Planning for retirement can be critical to help you maintain your standard of living and enjoy a comfortable retirement. While Social Security is designed to provide a safety net for retirees, it typically only replaces a small portion of your income during retirement. In fact, according to the Social Security Administration, Social Security may only replace about 40% of your annual pre-retirement earnings, though this can vary depending on your circumstances.
To get a rough estimate of monthly benefits you may collect when you retire, check out the Social Security Administration’s Quick Calculator. This can be a useful tool for comparing potential benefits with your current monthly expenses.
Given the limitations of Social Security, it may be beneficial to supplement these benefits with additional retirement saving accounts, such as a 401(k) or individual retirement account (IRA). If you can’t afford to contribute much toward these plans right now, setting aside even small amounts of your income can amount to significant savings over time.
You can also learn more about how much to consider contributing to retirement savings here.
This information is general in nature and is for informational purposes only. It should not be used as a substitute for specific tax, legal and/or financial advice that considers all relevant facts and circumstances. You are advised to consult a qualified financial adviser or tax professional before relying on the information provided herein.