Can I rely on social security?
According to Gallop, over ⅓ of Americans are planning on relying on social security. But here’s the problem. The Social Security Board of Trustees is projecting that they’re going to have a cash shortfall in the near future.
Social security benefits are almost certainly going to be reduced, and you shouldn’t rely on social security alone.
How much will I get?
As of 2015, the average Social Security benefit was $1,328. The exact amount you’ll get depends on how much you've earned over your lifetime and how old you are when you start collecting Social Security.
You get less money if you start collecting Social Security early on (at age 62) and more money if you wait to collect until you’re older. For example, if you wait until you’re older and start collecting benefits at age 70, you could be collecting closer to $2,600/month.
So how much do I need to save?
There are many tools out there to help you figure out exactly how much you’ll get from social security. Use this link to check out the Social Security administration's set of online tools.
There's one other factor to keep in mind that can make social security complicated. If you take social security benefits early on - but are still working and making money - it’s going to affect how much you collect from social security. More on that issue can be found here.
Remember, Social Security benefits are likely going to be reduced. Save in your 401(k) so you’re not living on the edge when you retire!
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