If you are doing any planning for your financial future, then you have considered what your life is going to be like once you retire. Even if you have a pension, trust, IRA or other type of retirement account you have probably also considered how Social Security is going to fit into your retirement profile. An experienced elder law attorney can help you understand the details. Here are some facts on Social Security and how it may fit into your retirement planning.

Social Security as Income

Social Security is a benefit that is able to all qualifying Americans. While there are aspects of it that deal with disability or survivors, the part that affects your retirement the most are the benefits paid to the elderly.

Right now it is estimated that two out of three elderly in the US rely on Social Security benefits as a source of income. Those benefits are based upon the amount of taxes that were paid into your account over your lifetime. It can replace as much as 55% of income for low income individuals or as low as 28% for top earners.

Knowing how much you are going to receive from Social Security will be able to help you plan your retirement spending. It can be a primary source of income or it can help to supplement other retirement accounts that you have received over your lifetime.

How Much Do I Need for Comfortable Retirement?

Most retirement experts agree that the answer to that question can vary greatly depending on what you would like to do in retirement. The best way to project how much you are going to need is to think about maintaining your current standard of living.

If you are a senior who wishes to maintain your current standard of living, you are going to need to have between 75-80% of the earnings that you received prior to retiring. Sources of this income can come from savings, home equity, retirement accounts, pensions and of course Social Security.

Since Social Security benefits are fixed and predictable, you can easily figure them into your planning for retirement. Knowing what you are going to receive will help to predict how much you are going to need in savings and investments in order to retire comfortably.

When Can I Start Collecting Benefits?

Again, the answer to this question can change greatly depending on your situation. You will need to look up your full retirement benefits age, since it is based on your birth date. This will tell you when you can retire with full Social Security benefits.

However, there are options to retire sooner or later. If you choose to retire before your full retirement date then you will be subject to a penalty to the Social Security benefits you earn. Conversely if you choose to wait, you can gain additional benefits.

Retirement and Estate Planning with an Elder Law Attorney

Social Security has many rules and regulations that need to be followed precisely. Don’t risk losing benefits by guessing wrong. Let Stano Law Group help you today!