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Investing in a 401k

Odds are the bulk of your savings will come from a 401k, which is an employer-sponsored retirement plan.

Part of the benefit of a 401k is the employer’s match – with some offering up to 5 percent of each paycheck.

In essence, employers are giving you free money as long as you invest a percentage of your paycheck.

Many experts suggest investing around 15 percent of your gross income into your 401k.

Understanding disability benefits (SSDI)

Social Security Disability Insurance (SSDI) provides relief for those with disabilities who can no longer work or are in the same capacity as before.

The benefit aims to replace a portion of the qualifying worker’s salary.

The vast majority of those who qualify for SSDI receive between $800 and $1,800 each month.

In 2021, the average monthly Social Security payment for the disabled was $1,277.

You’ll not want to mistake SSDI for Supplemental Security Income (SSI).

While those with disabilities can claim both benefits at the same time, SSI aims to help blind and disabled people, who have little or no income, as well as individuals over the age of 65.

Understanding survivor benefits

A widow, widower, and dependents may be entitled to survivor benefits after a death in the family.

In most cases, the surviving person will get the entire benefit amount of the partner as long as the partner has reached their full retirement age.

If your partner has delayed their claim or has a higher benefit for other reasons, you’ll get this instead of your benefits package.

To receive survivor benefits, you must be at least 60 years old and have been married for nine months unless the family member’s death was accidental or occurred while serving in the US military.

In these cases, there is no length of marriage requirement.

Understanding old-age benefits

Old-age benefits are likely the most well-known Social Security benefits.

You can start receiving the benefits at the age of 62, but every month you delay them and increase their future value until you reach full retirement age.

If you were born in 1960 or later, that age is 67. For others, it’s 66 and a specific number of months.

For each year you delay your Social Security benefit claim past your full retirement age, your benefits grow by 8%, up until the age of 70.