Many retirees unfortunately find themselves stressed financially. And often, a big reason boils down to the fact that they're receiving less monthly income from Social Security than they expected. If you want to avoid being disappointed by Social Security once your retirement rolls around, be sure to make these key moves.
1. Get an estimate of your monthly benefit
You can read up on what the average monthly Social Security benefit looks like at any given point in time. But that doesn't mean the number you see will be reflective of the benefit you'll be entitled to.
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The amount of Social Security you'll get each month in retirement will depend on different factors, including your 35 highest-paid years of earnings. But there's a really easy way to get an estimate of your future monthly benefit so there are no unpleasant surprises.
All you have to do is create an account on the Social Security Administration's website and access your most recent earnings statement. It will contain a summary of your reported wages, as well as an estimate of the future benefit you may be in line for. That way, you won't sit there thinking you'll have $3,500 a month from Social Security coming your way if, in reality, $2,400 is a more accurate projection.
2. Anticipate benefit cuts
Your Social Security earnings statement -- and the estimated benefit it shows you -- may not account for Social Security cuts. But those are a possibility.
In the coming years, Social Security expects to owe more in benefits than it collects in revenue. Thankfully, it can use its trust funds to keep up with scheduled benefits until that money runs dry. We're about 10 years away from seeing that happen. But if benefit cuts do end up being necessary, Social Security might pay you about 20% less each month.
Benefit cuts aren't guaranteed to happen. Social Security has faced financial challenges before, and it's thus far managed to avoid slashing seniors' income. But you may want to tell yourself to take the estimated benefit you see and reduce it by 20% -- just in case.
3. Delay your filing for a higher monthly payday
You may have more control over the amount of money Social Security pays you than expected. While your monthly benefit is based on your personal earnings history, your filing age will also determine how much monthly income you'll get. If you delay your filing until age 70, you'll score a higher monthly payday than you would by filing at an earlier age.
It doesn't make sense to delay Social Security beyond age 70 since there's nothing to be gained financially. But you're allowed to claim Social Security as early as age 62. Waiting until 70 could leave you with much more monthly income, thereby lowering the chance of those benefits disappointing you.
It's unfortunate that many seniors end up feeling let down by Social Security. Take these steps to avoid feeling the same way once your retirement arrives.
