You can always get an estimate of your future benefits based on your current credits by asking the SSA directly. However, at age 55 with $80,000 per year in earnings, if you retire at age 67 and maintain that income you are likely to collect about $3,533 per month/$42,406 per year in benefits. This is the basis of your retirement budget. You will receive this amount, adjusted each year for inflation, for the rest of your life. If you delay collecting benefits, you can increase this amount up to a maximum of ...

Core Insights - Retirement planning should be approached through a "bucket" strategy, categorizing income needs into lifestyle, needs, aspirational, and estate buckets [4][3][6] - A couple with $1.4 million in IRAs and $4,100 monthly from Social Security can expect an annual retirement income of approximately $108,000, but actual needs may vary based on individual circumstances [5][16] Income Sources - Retirement income typically comes from Social Security, pensions, and retirement accounts, with the example couple relying on $4,100 monthly from Social Security and $1.4 million in IRAs [7][5] - Delaying Social Security benefits can significantly increase annual income, with potential benefits of $52,733 at age 67 and $65,388 at age 70 [8] Withdrawal Strategies - The 4% rule is a common guideline for withdrawals, suggesting that a $1.4 million IRA could yield about $56,000 annually [8] - Combining Social Security and a 4% withdrawal rate results in an estimated total income of $108,733 per year [9] Tax Considerations - Withdrawals from IRAs are subject to income tax, and 85% of Social Security benefits may also be taxable depending on the adjusted gross income [13] Budgeting for Retirement - Retirement budgeting should start with understanding spending needs rather than solely focusing on income [17] - New expenses in retirement, such as long-term care insurance and gap insurance, should be factored into the budget [14] Inflation and Emergency Funds - Inflation is a critical consideration in retirement planning, as prices can double approximately every 30 years at a 2% inflation rate [15] - Maintaining an emergency fund is essential to cover unexpected expenses, although liquid cash may be eroded by inflation [19]