Answers To Questions

As you start thinking about your exciting retirement, it's easy to dream about wonderful holidays, pursuing your hobbies, or volunteering for an organization you're passionate about. However, to fully enjoy your upcoming retirement you need to have a solid retirement financial plan in place.

Start by understanding your Social Security benefits.

Who in the US qualifies for Social Security benefits? When a person retire or become disabled or if you are the widowed, divorced or minor child survivor of someone who has passed away, Social Security payments can replace part of the income you received when you worked.

How does a person begin receiving Social Security benefits? It's up to each individula person to apply for benefits. You can do that at socialsecurity.gov or by calling 1-800-772-1213. If you don't want to do it online and you prefer to apply in person, call to make an appointment before you visit the local Social Security office. When you apply for benefits you will need to have access to your Social Security number, your most recent W2, and your marriage/birth certificates. People can apply no more than four months before you want the benefit checks to begin.

At what age will I start getting Social Security retirement benefits? Your individual retirement age is a personal choice. Anyone can start receiving benefits at the age of 62, but you'll get less payments. The benefit dollar amount is reduced by around half a percent for each month that you apply early. To get the full social security benefit amount, you will need to wait until you have reached the full retirement age. That is determined by the year a person was born.

How much will my monthly social security benefit be? You can use the handy SSA online Retirement Estimator to get an idea of how much the Social Security benefit will be. On that site you can also plan for how your survivors will be covered and learn what benefits are available if one becomes disabled and how the application process works.

How will the social security benefit be paid? The easiest way, and what most people do these days to receive the monthly Social Security payment is through direct deposit. You can sign up for it when you apply for your benefits.

What About Early retirement? You can get Social Security benefits as early as age 62, but if you retire before you reach full retirement age, your benefits will be reduced, based on your age.

If you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach your full retirement age.

You might want to stop working before age 62. But if you do, the years with no earnings will probably mean a lower Social Security benefit when you retire.

Note: Sometimes health problems might force you to retire early. If you cannot work because of health problems, you want to consider applying for Social Security disability benefits. The amount of the disability benefit is the same as a full, unreduced retirement benefit. If you are receiving Social Security disability benefits when you reach full retirement age, those benefits will be converted to retirement benefits.