Nearly 70 million people collect some kind of Social Security benefits. Most are retirees, but in various circumstances, spouses and children of retirees, disabled workers and their family members, and survivors of deceased workers also collect benefits.
You're probably looking forward to collecting your own Social Security benefits -- perhaps soon. Here are some signs that you might be ready to claim them.
1. You've set up a "my Social Security" account
Everyone, no matter your age, would do well to set up a my Social Security account at the Social Security Administration (SSA) website. When you do, you'll be able to click in any time to see how much you've paid into the program and the latest estimates of your future benefits, based on the SSA's record of your earnings. You can take care of a lot of Social Security business online with an account.
2. You've read up on Social Security
Before claiming your benefits, read up on Social Security so you can make savvy decisions regarding it. These decisions might maximize your total benefits received, for example. Keep reading about it, too, because the vital program is facing a funding shortfall in just a few years.
Congress can act to solve the problem, as there are multiple fixes, but it remains to be seen whether it will. If no fix is enacted, you'll likely end up collecting only some of what you're due as your benefits will shrink.
3. You have an overall retirement plan in place
Everyone needs to plan for retirement carefully, estimating how much income will be needed in retirement and how to generate it. Social Security income will certainly be a part of your plan, but it should only be a part -- and perhaps not the biggest part.
It's rarely too early to start planning for retirement because the sooner you start socking money away, the fewer total dollars you may need to save and invest -- as your earliest invested dollars have the most time in which to grow for you. Also, if you start sooner and save and invest in earnest, you may be able to retire early.
4. You've got other income streams lined up
Since you can't rely on Social Security to provide all your retirement income, it's smart to aim to have multiple income streams for your retirement years. Here's one way that could look: