There are millions of Americans who rely on Social Security as their financial backbone. As 2026 approaches, many people are preparing to retire. However, it’s important to plan carefully before you think of retiring. Here are five smart steps to take today to make sure you’re ready when the time comes.
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Find Out How Much You’ll Get
Beneficiaries should check what their monthly benefit will be when they retire. The exact amount is dependent on the individual’s work and earnings history.
Beneficiaries are encouraged to create an online Social Security account and make use of the tools on the site; this will allow you to check your benefit estimate. Go through your income earnings record to make sure all the information is correct, remember mistakes can affect your benefit. If you know how much your benefit will be, it is much easier to plan ahead and budget accordingly. This will ensure you have money for your essential expenses.
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Know Your Full Retirement Age
The full retirement age (FRA) is the age at which you are eligible to collect 100% of your benefits. The FRA is 67 for all those who are born in 1960 or later.
Yes, you can claim Social Security benefits from the age of 62, but be mindful that your benefits will be permanently reduced. On the other hand, if you wait up until age 70, you will receive the maximum out of your benefits.
Here’s what to think about:
- Should you require the money urgently, then perhaps retiring early will be the best decision for you.
- However, if you are able to wait longer, claim your benefits later as this will ensure you receive the maximum out of your benefits.
- Look at your personal living situation and consider health and finances. This will help you determine when you can retire.
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Get Your Paperwork Ready
Having all your documents in order before you apply can save you a lot of frustration later. You’ll need:
- Your Social Security card
- Your most recent tax return
- Original birth certificate
- Military service records
Be sure to acquire these documents now so you don’t waste time looking for these documents when it’s time to apply.
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Plan for Healthcare Costs
Beneficiaries should also plan for unexpected healthcare costs. Healthcare costs is one of the major expenses during retirement. Be sure to account for medical expenses when planning your retirement budget.
Unfortunately, those people who don’t qualify for Medicare yet will have pay for their medical bills out of pocket. In addition to this, even when you are on Medicare, any amounts that are not covered, you will have to pay out of pocket.
If it’s possible, beneficiaries should consider delaying retirement so that they get the maximum out of their Social Security benefits.
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Keep Up with Social Security Changes
Just as everything else in this world that is changing, so is Social Security. It is therefore important for beneficiaries to stay informed and make wise decisions.
By keeping up with the changes, you can adjust your strategy ahead of time and avoid unpleasant surprises.
Final Thoughts
Beneficiaries must be mindful that it is extremely important to plan ahead, especially those who are planning to retire in 2026. It is important to factor in your personal living situation before making the decision to retire. Beneficiaries should also consider other saving options and investments apart from just Social Security, this will ensure for financial stability during retirement years.
All those who are able to wait, delay claiming benefits until FRA or even until age 70, this will ensure you get the most out of your benefits.