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What Is The Real Value Of Social Security?

The Value of Social Security

Value of Social SecurityRetirement experts say that to protect yourself against inflation and outliving your savings, you shouldn’t plan on spending more than 4 percent of your retirement savings each year. This means if you had $1 million saved, you shouldn’t plan on spending more than $40,000 each year of your retirement.

Now, consider your Social Security annuity.  If you and your spouse are receiving $1,700 a month from Social Security, that’s just over $20,000 a year, which is how much you should be spending if you had $500,000 in retirement savings. If you and your spouse are receiving $3500 a month from Social Security, that is $42,000 a year, which is more than you should be spending from a retirement portfolio worth $1 million.

Not only this, but the amounts you receive from Social Security are also inflation protected and that makes Social Security one of your most important sources of retirement income. You and your spouse have paid into Social Security’s trust fund throughout your working years, so it’s your money and you should treat it as you would any other saving. You can does this by becoming knowledgeable about your benefits and making all decisions carefully.

Making the Most of Your Retirement Benefits

Everyone who receives Social Security checks is interested in how to maximize their benefits. However, when it comes to making the decisions that will increase or reduce the amounts you receive from Social Security, can become very complicated and downright confusing.

In general, the longer you wait to start receiving your Social Security benefits, the higher the amounts you’ll receive.  For example, as a general rule, if you wait until you reach age 70, your inflation protected benefit amount will be 76 percent higher than had you elected to start receiving benefits at age 62.

When you turn 62 years old, you become eligible to start receiving Social Security benefits but, at a reduced level.  Also, depending on the year in which you were born, you become eligible for full benefits at either 66 or 67.  However, the amount of your benefits continues to increase until age 70, after that you’ve hit the max.

Here’s an example for someone born in 1937: for anyone born in 1937 or before, the retirement age is 65.  If someone in this group elects to start receiving their benefits a 62, they’ll only receive 80 percent of their full retirement amount, but if that person had waited until age 70, he or she would have received 132 percent of their fill benefit amount.  The amount of that difference depends on the individual’s specific situation, but it’s always hundreds of dollars a month.

Of course, if you’re in poor health or you simply can’t afford to wait until age 70 to start receiving your benefits, then you can elect to start receiving checks at age 62. Remember, there aren’t any one-size-fits-all solutions where Social Security is concerned.

There are things though, like triggering a spousal benefit for a low-earning partner or suspending your personal benefits until age 70 while you retire at your normal retirement age. There are different rules that impact your benefits, like if you or your spouse is divorced or if one of you is still working through your 70s. 

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41 comments

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  2. I elected to take my retirement at 62, now am 77. Can I pay back for the three years or eight years, and start getting the increased amount–is it retroactive?
    Thanks, Mike

  3. I was recently accepted to the SSDI, which doesn’t begin until 5-2015. I am currently receiving my deceased spouse SS benefits. I am 61 yoa turning 62 next month. I retired in 2013 and am collecting pension from Cal Pers since 1-2013. I was diagnosed with spinal stenosis and had spinal fusion in October of 2013. I am considered disabled and can not work.
    How do I apply for State Disability? Who can I contact? It took 6 months for the SSDI approval, do I have to wait that long to get State disability when I was already approved for SSDI?
    I am receiving both pension and widows benefit, can I also receive State Disability too?

    • MI recently retired from the Federal Government. 3 years ago I had my heart stop 3 times in one day. I retired early because I drove as part of my job, I started experiencing pain in my heart and dizzy spells, I took early retirement before I hurt someone or myself. I have seen a several doctors who did not give me the worse news but not very news either, can I get lawyer to help me fight for SSI?

      • Warren B. — CS Admin

        We cannot provide legal advice, but it would be worth checking into with an attorney. Thanks for reading and we hope you like the new issue.

    • Warren B. — CS Admin

      We suggest you contact an attorney that specializes in SSDI to see what your options are. We cannot provide you legal advice however. Thanks for your comments and patronage!

    • Warren B-CS admin

      The best thing to do is call the Social Security office as there are there to help and know all the little details. Their toll Free # is: 800-772-1213 or go to http://www.ssa.gov/myaccount/ for more info. Thanks for contacting CS!

  4. I just wan to know what I am entitled to now that I am 70.

    • Warren B. — CS Admin

      Their toll Free # is: 800-772-1213 or go to http://www.ssa.gov/myaccount/ for more info. Thanks for contacting CS!

      Or, for a comprehensive Social Security benefits planning roadmap created by a best in class Social Security rules engine, the only one of its kind, go to nowitcounts.com. Social Security expert analysts combed through more than 700 pages of Social Security rules to develop an invaluable tool that will assist you in determining your optimal time to retire so you can receive the most money from Social Security. The right choice means the difference of hundreds of thousands of dollars in Social Security/retirement benefits..

    • Warren B-CS admin

      The best thing to do is call the Social Security office as there are there to help and know all the little details. Their toll Free # is: 800-772-1213 or go to http://www.ssa.gov/myaccount/ for more info. Thanks for contacting CS!

  5. If a spouse pays into social security and passes away before receiving any benefits, what happens to their social security that they paid in. How come the living spouse is not entitled to receive those payments?

  6. quisiera saber si uno se retira por enfermedad, el social da el mismo dinero, o cual es la aproximacion gracias

  7. SS started sending me Money before I retired which will be in late August this year and I will be 65 in October. They keep sending me $ and I mail it back and then they resend it to me. I finally kept it, so what is gonna happen when I really retire?

  8. can I get any funds at my age of 72

  9. I just turned 62 – would like to know if I retired now what would I get monthly verus waiting until 66

  10. I would like to know if I am able to collect anything on my social security yet.If I can please let me know. Thank You, Robert Socha

  11. i plan to draw ss off my late husband at age 60. is there some kind of chart that give me an estimate as to what i may get when i reach that age.

  12. When do I get my calculations for ss

  13. Please give me an estimate of my benefits at age 63.

    Thank you

    • Hi,
      If you check back in 30-45 days, CS is launching a very comprehensive Social Security Benefits Report/Questionnaire that will navigate the enormous SS benefits maze and provide you optimal results. There is not another report anywhere like this, not even at AARP. Thank’s for your support to CS!

  14. when is someone going to do something about ethe WEP that Ronald Regan started. My husband was in the service and had thirty years in and he also worked in industry paying DD. After twenty five years he is still getting $170. per month. Our Vice President gets $29,000. Something is very wrong here.

    • I made a typo. It shouldn’t be DD it should be SS for social security.

    • We agree! It is about time we give our soldiers the same care the politicians get for doing a much more honorable and difficult job and sacrifice. Thank you for your service.

  15. where the heck is my calculation, why did I give you my info???

    • Hi, To get a calculation on your SS income, please check back in one month (at the Social Security sub-menu, under Money tab), as CS will be launching a Social Security Timing Planner Report (calculator) that will show you how to maximize your SS income. Something no other site, not even AARP has!

      Thanks for reading CS!

  16. IM GETTING MY SSI I JUST TURN 63 TODAY I LOST VISION IN ONE EYE SCISTA NERVE CRONIC PAIN ALSO LOSING CERCILATION IN BOTH LEGS AND 3 OR 4 DULGING AND 1OR2 SLAM TOGETER I NO IM NOT GETTING FULL BENEFITS BEN THIS WAY SIENCE I WAS 58YRS. OLD MAYBE YALL CAN HELP THANKS

    • Hi, thanks for reading. Check back in 30-45 days as CStrong>CS will be offering a low-cost and extremely comprehensive Social Security Report Tool that is not available anywhere, and exclusive to us. Our experts have been combing through the Social Security rules using advanced analysis and mathematics to to help you calculate the optimal time to retire and receive the most Social Security benefits. We take our work seriously and are here to help you navigate the confusion of Social Security Benefits, All the best, CS Staff.

  17. need a summary of my social security benefits

    • Your annual SS award letter is sent to you in February for the benefits paid through the following yearThe best thing to do is call the Social Security office as there are there to help. Their toll Free # is: 800-772-1213 or go to http://www.ssa.gov/myaccount/ for more info. Thanks for contacting CS!

    • Hi, thanks for reading. Check back in 30-45 days as CStrong>CS will be offering a low-cost and extremely comprehensive Social Security Report Tool that is not available anywhere, and exclusive to us. Our experts have been combing through the Social Security rules using advanced analysis and mathematics to to help you calculate the optimal time to retire and receive the most Social Security benefits. We take our work seriously and are here to help you navigate the confusion of Social Security Benefits, All the best, CS Staff.

  18. I did not sign up for my social security at 62 but iwas getting

    I did not sign up for my SS at 62 but i was receiving SSI.I did not know that i could wait until I was 66.I wasn”t told I could wait. I started getting it .Ithought i had to accept .Thus now that I am 66 can I get my full beneifits?

    i

    ssi

    • Richard Pérez-Feria

      Hi, I believe you can but there may be some special conditions. I recommend visiting your local SS office or their website at: http://www.ssa.gov/myaccount/
      You may also call them at 800-772-1213. Online you will have to register if you do not already have a log in.

      Thanks for reaching out to CS and stay tuned for our March launch of our exciting new site full of a wealth of resources and hot content!

    • Hi, I recommend visiting your local SS office or their website at: http://www.ssa.gov/myaccount/. You may also call them at 800-772-1213. Online you will have to register if you do not already have a log in. Thanks for reaching out to CS!

  19. if I apply for benefits now will I still be able to collect from my ex husbands ss in may

  20. just checking benefitrs

    • Hi, thanks for reading. Check back in 30-45 days as CS will be offering a low-cost and extremely comprehensive Social Security Report Tool that is exclusive only here at nowitcounts.com. Our experts have been combing through the Social Security rules using advanced analysis and mathematics to to help you calculate the optimal time to retire and receive the most Social Security benefits. We take our work seriously and are here to help you navigate the confusion of Social Security Benefits, All the best, CS Staff.

  21. I want to have social security award letter ..Where I can obtain this

    • Richard Pérez-Feria

      Hi, you can get your SS Award Letter the same day by visiting your local SS office or by visiting their website an requesting online at: http://www.ssa.gov/myaccount/ You may also call them at 800-772-1213.

      PS: You will have to register if you do not already have a log in. Thanks for reaching out to CS and stay tuned for our March 1st (or so) launch of an exciting new site!

      Thank you for contacting us.
      – the staff at CS!

    • Your annual award letter is sent to benefit recipients in February for the benefits paid through following year would/should show a Medicare deduction. If you do not see it, the best thing to do is call the Social Security office as there are there to help. Their toll Free # is: 800-772-1213 or go to http://www.ssa.gov/myaccount/ for more info. Thanks for contacting CS!

  22. Need a summary of my social security
    benefits to see how many years I have to work to get my full benefit.

    • Hi, thanks for reading. Check back in 30-45 days as CS will be offering a low-cost and extremely comprehensive Social Security Report Tool that is not available anywhere, and exclusive to us. Our experts have been combing through the Social Security rules using advanced analysis and mathematics to to help you calculate the optimal time to retire and receive the most Social Security benefits. We take our work seriously and are here to help you navigate the confusion of Social Security Benefits, All the best, CS Staff.

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