By: Sahil Luthra
For better estimation that SS benefits will cover your retirement bills you can evaluate your retirement expenses, review your income sources you will receive in retirement, understand Social Security Benefits and taxes.
You can evaluate your payment by using calculators provided on website to get the estimation of your monthly payments, you will need to have earned at least 40 Social Security credits.
You can earn one Social Security credit for every $1,470 you make during the year, you can earn up to four credits for the year and will need to make $5,880 to receive them.
The amount received is calculated on the average amount of your earning during period of 35 years.If you work more than 35 years, the benefits will be based on your 35 highest earning years.
If u start early you will be receive less payments and if you delayed Social Security up to age 70 you will receive higher monthly payments for life.
After retirement, you will need to make mortgage payments if any, auto and transportation expenses, utility bills, grocery costs, travel and compare your total expenses with your benefits.
You can live comfortably on just Social Security If you head into retirement without any debt, own your home and have a low cost of living, the benefit may cover your monthly costs.
When monthly expenses are higher than Social Security benefit, you should think about other source of income, from a workplace pension plan, retirement accounts, side jobs, annuities.
To fill the gap between your Social Security and your expenses you may need to rely on other sources of income, so make a retirement financial plan accordingly.
You need to pay some taxes on part of your Social Security income if this income is more than a certain limit.
When you do pay taxes on your Social Security benefit, there are certain advantages that come with bigger.
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