As you’re planning for retirement, one important step you must take is to determine how much potential income you’ll receive each month. You invest money to grow your portfolio so that one day, it will be there to generate income for you during retirement. There are many other sources of income you can take advantage of, too. If you’re in the agricultural space, assets such as cattle for example. You may also have rental properties or another business that can spin off income to you. However, Social Security income benefits are playing an ever-increasing role in the retirement plans of many Americans. It provides a valuable and guaranteed source of income to millions, but do you know how much you’re entitled to?
How to estimate your future Social Security income via the Internet
When I meet with clients to prepare retirement projections, I often ask how much they expect to receive from Social Security. Surprisingly — most people have no idea! I’d urge you to visit the Social Security Administration’s website, SSA.gov, click on the “sign in/up” button on the top right of the page, and then click on “My Social Security” on the left. From here, you can create a new account which will allow you to view your estimated future income from Social Security.
When you take the income affects the amount you will receive
You’ll notice when viewing your benefits that – at the earliest – you can take Social Security retirement income at the age of 62. Doing this results in a decreased amount of monthly income. However, if you have enough income from other sources and can wait until your “full retirement age” (which is likely ~67) you’ll see a higher income amount. Lastly, if you defer taking Social Security income until age 70, there is yet again an increased amount available to you.
It’s likely that Social Security income simply isn’t enough
The projected income amount you see online is likely to surprise you… in that Social Security probably isn’t going to provide enough income for you to sustain the lifestyle you want in retirement.
If that is the case for you, you can work with a financial advisor to come up with a plan for covering the extra income you’ll need to achieve your retirement dreams.
This column is sponsored by Allen & Company, and the opinions expressed herein may not re ect those of CFAN or of its advertisers.
BIO: Born and raised in the Central Florida area, Eric Greenhow strives for excellence — embodying the spirit and core values of Allen & Company. He is nationally recognized for his industry leadership and community service and is a Chartered Financial Analyst® and CFP®. For more information about Eric and the Allen Investments Team, call 863.294.7411 or visit AllenInvestments.com/GoGreenhow.