It might be the case that you are retired and get Social Security benefits. There are many people who like to plan their future in advance while others prefer to plan it when they are close to it. However, the rest does not like to prepare anything at all and wait to see what lies in store for them. No matter if you get Social Security benefits or you live off your savings or investments to plan your future.
There is always something you can do about your money and the way you manage it. While what someone gets from their Social Security checks is not enough, for others there should be plenty. Remember that there is no fixed amount to what you can earn, there is a maximum amount though. Moreover, when Social Security started, Americans’ life span was much lower than now.
As people live much longer now and coping with the high and increasing cost of living is really challenging, you need to work out what you will get in your 80s. Just like every year, the United States Census Bureau publishes a survey with information regarding incomes. According to them, the average income for households that are at the age of 75 or over is $54,416. The Social Security benefits average for 80-year-old retirees was approximately $1,664 in 2021.
How much did the average Social Security benefits for 80-year-old retirees increase in 2021?
Bear in mind that due to the rise in COLA in these recent years Social Security has increased benefits. Therefore, for those at the age of 80 their benefits grew on average by 5.27% compared with the 2020 benefits. Since COLA has increased again, the mean is about to go up once more this year and the next one. In 2020 the average pension was $1,580 for those who were 80 years old at that time.
Those who are close to retirement age are not sure whether to retire or to keep working any longer. If you file for your Social Security benefits later than 62, every year extra you work, the amount increases. Therefore, try to make sure you can live off your retirement pension now. It would be a good idea to try to spend for one month what you would get when retired.
If you cannot cope with what your Social Security benefit would be in the future, it would be best to delay your retirement. As we said before, COLA is likely to increase in the coming years, so the cost of living will affect your income. As long as you feel young and healthy, you can opt for putting off your retirement. However, if you get by with your Social Security benefit and your life savings it is time to retire.