How To Retire On Social Security
If you want to know how to retire on Social Security, you must plan ahead. It's possible to live comfortably in retirement just on Social Security. With advanced planning and actionable steps, the reality of making ends meet on Social Security can be a reality. Ideas like paying off debt and living the way you will at retirement while you're still working are good ways to control and know what money you'll need at retirement.
To retire on Social Security, you will need:
- an action plan
- a budget
- work history where you pay into Social Security
- Make a plan and a budget. Find out how much income you will be paid each month from Social Security upon retirement. Knowing what the dollar amount is is key to knowing what your budget will be when you retire. Use the Retirement Estimator on the Social Security Web site.
- Work as long as possible. The longer a worker is employed and contributing to the Social Security fund, the more they will be paid upon retirement.
- Work after retirement. If your health is good and you enjoy working, consider working a part-time job after retirement to supplement your Social Security income. Consult the Social Security Web site for guidelines on how much you can legally earn and still receive the maximum Social Security benefits.
- Pay off your mortgage. One way to make your retirement funds go farther is to have fewer expenses. The main monthly expense for most people is their housing payment. Buy your house outright before retirement. This will eliminate hundreds if not thousands of dollars in monthly expenses.
- Buy a car. As with paying off your mortgage, it's a good idea to buy a car and have it paid for at retirement. The upkeep should be minimal if your car is a late model that has been well maintained.