Choosing your retirement age is not a simple or easy decision to make. On top of that, the Social Security system in the United States ensures that you can have a series of monthly payments to live in financial comfort. Despite this, not everyone knows how to choose when is the best time to be able to start collecting that subsidy. The final decision is a personal one, but it greatly influences the check you receive each month.
Since the maximum check of $4,194 per month is not something that is affordable for everyone, we will need savings. And that’s why many people need to know how much money they should have saved once Social Security retirement day comes. While it is true that every situation is totally different, we can start from the basis of having a standard savings and then adapt it to each personal situation.
There is no exact figure that we can say for what we have saved. But we must study our situation to check how much money we will need in the future. As each case is particular, you should pay attention. Even so, you can follow a general guideline that will help you get an idea.
Saving for retirement
As Usa Today comments, the amount of money you need to save in order to live well in retirement is 80% of your pre-retirement savings. This means that just before you retire, you need to figure out what 80% of your expenses are. By the time you collect Social Security, you should have that portion of the money saved so you can live more comfortably.
Although this is a very good idea, it is true that not all retirees can afford to save so much. Even so, try to keep your Social Security as large as possible, so you won’t need to save as much money while you are working. And here comes the other part of the question, and it is also normal to question when it is a good idea to start saving.
When to start saving?
This is another important part of this topic. When to start saving is a question that all workers have. To begin with, it is worth noting that no time is too soon to start saving. That is to say, just as you start contributing very early to have a good Social Security, you can also start saving.
The earlier you start saving, the better conditions you will have during your retirement. This is a fairly easy rule to apply and to understand. It’s not easy to apply, as Usa Today points out, but it’s absolutely necessary. Save as much as you can from the exact moment you can start saving to have a good retirement with Social Security.