Important Things to Keep in Mind before Retirement

Retirement might sound peaceful to some or even exciting in some cases, but it can actually be a difficult landscape to understand and navigate. One can even get rid of this problem by guiding his/her savings with a retirement calculator.

Figuring out how much one can expect to get in Social Security benefits can be difficult, said experts.

For many Americans, Social Security benefits are the base of their retirement incomes. Whether one is close to retirement or years away, it’s about time they need to know the basic Social Security facts. Check out some of the most important ones to know below.

Following points will tell who all are eligible for benefits:

• If you had made at least $4,800 annually and paid into the system for 10 years (or 40 quarters), you are eligible for benefits.

• You can begin collecting your full retirement benefit once you reach full retirement age, between 66 and 67, depending on when you were born.

• If you wait until you reach 70, you will even receive an additional credit, whereas if you claim before full retirement age, your monthly benefits will be reduced.

Following point would clear how social security benefits are calculated:

• Your birth year, income and marital status also affect how your benefits are calculated.

• The Social Security Administration takes your highest-earning 35 years of covered wages, averages them and indexes for inflation.

Besides, there is a maximum benefit, which changes every year. It is $2,663 a month for 2015. If your expenses are significantly more than this number, it’s important to focus on saving enough money to make up the difference. Social Security system may be changing, it’s a good idea to know what benefits you are entitled to, how and when you will receive them, suggests experts.