4 Lessons to Master During National Social Security Month
Updated: Aug 31, 2022
April is National Social Security Month! According to Nationwide’s 8th Annual Social Security Consumer Survey, more than half of Americans express confidence that they know exactly how to optimize their Social Security benefits. However, only 6% actually understand all the factors that determine the maximum benefit someone can receive. In addition, the report highlighted additional knowledge gaps:
A full 39% don’t know at what age they are eligible to receive their full benefits.
Just over half (51%) do not have a clear understanding of how much they will receive in future income.
Over a third (37%) incorrectly assume that Social Security benefits are not protected against inflation.
Nearly half (45%) mistakenly believe if they claim their benefits early, their benefits will go up automatically when they reach full retirement age.
By mastering these lessons, you’ll immediately go to the head of the class for retirement planning!
Match your birth year to the full retirement ages shown below:
The rule of thumb is that you’ll need to replace about 75%–80% of your preretirement income. Social Security will help fund part of your income needs, generally somewhere between 25%–40% (depending on your earnings history). Your personal savings and retirement account will have to make up the difference.
Age 62 is the minimum age at which you can choose to begin receiving Social Security benefits. However, the math is pretty black and white: claiming earlier gives you a reduced benefit