Hey! It’s about that time….your W-2’s are rolling in, other pieces of important paper are making their way to your home, and you’re either terrified of writing a check to Uncle Sam or excited to get a lil’ somethin’ somethin’…..
It’s kind of neat to check out your w-2 and see just what your time was worth in 2016.
It’s even cooler to see what your time was worth (“on the books”) for your entire working life. You can sign up for My Social Security and see your history of earnings and what your estimated monthly social security benefit would be once you meet the benefit requirements.
To qualify for social security, you have to technically work and pay into social security for 40 quarters – 10 years. I’ve qualified for social security for quite sometime now and you probably have too if you’re reading this of all blogs.
Your estimates are based on the assumption that you will earn the same salary every year from now until retirement. I check it at least annually since my salary has gone up a little bit. Here’s mine so far:
At full retirement age (67): $1,666 a month
At age 70: $2,066 a month
At early retirement age (62): $1,166 a month
Makes you think about that sweet tax break for contributing to personal retirement plans, huh?
The Importance of Saving for Retirement
I like to think by age 67 I will have my mortgage paid off so I won’t have to put $1,000 a month towards that….but even so, what the fuck does one do with a measly $1,666 a month? Can you live off of that and handle an emergency?
All I’m saying is that people don’t enjoy retirement as much when they are living off of just their social security….because it is NOT ENOUGH.
Boost that 401k! Open a Roth IRA and start contributing – up to $5,000 annually (and until April 15 of the following year)! Or at least STOP MAKING MORE DEBT FOR YOURSELF.