3 Key Social Security Numbers You Need to Know
Millions of seniors depend on the income they receive from Social Security to cover their retirement expenses. If you're gearing up to file for benefits, it's imperative that you really understand what you're getting into, because the age you claim Social Security at could determine what your retirement income looks like. With that in mind, here are three key numbers you should keep in mind when weighing your options.
Social Security doesn't pay seniors a single universal benefit. Rather, the amount of money you'll be entitled to will hinge on your specific income history: namely, your average monthly wage, adjusted for inflation, during your 35 highest-paid years in the workforce.
But here's what that also means: For each year within that top 35 that you don't have earnings on record, you'll have $0 factored into your personal benefit calculation. That's why it's a good idea to aim to work a full 35 years. For many people, that's not a problem, but if you took a career break, you could end up being shy a year or two by the time you reach your 60s. If that's the case, postponing retirement a bit could leave you with a higher monthly benefit -- for life.
Source Fool.com
