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Retirement usually means a lot of free time from now on. There are also two things that automatically come to mind, social security and employer pensions. Unfortunately, these two may not be enough to support the life of a retiree. Benefit from social security is deemed to be too small and there are less and less employers willing to provide pensions.

Hence for the majority, personal savings have turned out to be an essential part of retirement income.

Social Security
To pass for the series of its benefits, you must be able to render contributions to the system for a total of ten years. The basis of your benefits would also be your earnings before you reach the age of retirement.

The good side is that benefits rise with inflation. The down side is that the earning used to determine the amount of benefit is capped. The cap is a disadvantage for those people who earn huge income for they will receive proportionately less of their pre-retirement earning compared to those who earn below the cap.

Once you reach your age of retirement than you can fully receive your benefits. The usual retirement age is 65 but for those born in year 1938 or much later, the age increases to 67 for those born after the year 1959.

If you want to check out how much benefit you can get, go to the website of Social Security Administration at www.ssa.gov. You can also review the annual statement sent by SSA to your registered address, which they send to you three months before your birthday.

Early vs. Late Acquisition of Benefits
You can choose to start getting your benefits even as early as 67. However, expect that you will receive fewer benefits compared to if you have waited for your actual and full retirement age to come first. For instance, 66 is your full retirement age and you decided getting your benefits by age 62. Then you will be receiving just around 75% of the amount you are supposed to have. For every month that you wait patiently for until you reach the actual age, your monthly benefits are set to increase. So in this example, by age 63, you will get about 80% of the actual amount.

On the other hand, if you decide to take the benefit years after your full retirement age, you will receive an increase in payment. Each year beyond your full retirement age equals an additional 8% per month. So, if your full retirement age is 66 and you choose to get your benefit at age 30, you will receive a monthly benefit of 132% of the amount you should have received had you starting getting the benefit at age 66.

Just remember that choosing to take your early benefits could mean smaller payments but definitely more payments in your entire lifetime. The same thing is similar when there is delay. So your final decision on when to take in your benefits should require a lot of thinking with regards to your total amount of expected benefits all throughout your lifetime. Hence, the best alternative will greatly depend on the length of your life. Check out the SSA website to help you in analyzing the benefits one can receive at varying age levels.

Spouses get benefits even if he or she never had earnings under the Social Security Administration. They will be entitled under the record of the registered spouse. Children of the registered individual will also receive some benefits but it will all depend on their ages.

For your spouse, he or she will get 50% of your benefits once you have reached your retirement age. You will also lessen your spouse’s benefit if you will get your benefits earlier.

The spouse is entitled to receive either his or her own social security benefit or that of his or her spouse, whichever is higher.

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