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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®








 SOURCES OF RETIREMENT INCOME

  

Are You Ready to Retire?

Retirement Budgeting

Sources of Retirement Income

Tax-Deferred Savings Vehicles

Estate Planning

Selling Your Business

Getting Your Business Ready for Sale

Working With a Business Broker

Closing-Your-Business Sale

More Resources: Retirement Planning 		  According to the latest estimates by the Social Security Administration, about 60 percent of a current retiree's income has to come from sources other than Social Security benefits. The share supplied by each source varies with income level.
  • 40 percent: Social Security
  • 19 percent: Pensions
  • 20 percent: Earnings
  • 18 percent: Personal assets
  • 3 percent: Other

Of course, the amount you'll receive from Social Security depends both on when you retire and the amount you earned during your working years. Social Security payments are based on your personal 35-year earning history, so amounts may be lower if you earned substantially less in some years or retired before working 35 years. And of course, since it's a government program, the payment amounts and criteria to receive benefits may not be the same when you're ready to retire.

Source: Social Security Administration

How Much Will Social Security Pay?

Depending upon how much you have contributed to the system over your working life, you can expect to receive from $10,000 to $17,000 a year in Social Security benefits when you retire at age 65. The Social Security’s calculator estimates that if you are currently 45 years old and are earning $50,000, you should receive the equivalent of $1,121 a month in current dollars when you retire at age 62 in 2019. If you waited until you were 66½ years old, you would receive $1,553, according to current Social Security calculation.

To find out how much you can expect from Social Security when you retire, request an Earnings and Benefits Estimate Statement. Or use the SSA’s quick online calculator for a general estimate of benefits.

TIP: If you want to continue working after you start receiving Social Security benefits, keep in mind that your earnings may reduce the amount of benefits you can receive. However, a recent federal law allows workers age 65 to 69 to collect full Social Security benefits no matter how much they earn.

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