According to retirement studies conducted by J.P. Morgan, two-thirds of the average American’s retirement income comes from their Social Security and their earnings.  And many of these people find themselves having to work longer and retire later.  And remember, Social Security benefits only replace 27% of higher incomes (past wages of at least $113,700) and up to 58% of lower incomes (past wages of $20,172) of one’s past wages (Source: 2013 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund).

One simple way for a 60-year old pre-retiree to improve their situation is to delay starting their Social Security income.  According to The Social Security Administration each year you wait to draw Social Security you gain an increase of approximately 7%, much like receiving a “raise” in your retirement pay check.  And though a few can’t delay, we have found with some adjustments many can wait to begin this benefit until at least their full-retirement age (age 66 if you were born between 1943–1954).  This may be a particularly important consideration if a spouse has “good genes” and stands a reasonable chance of living into their 90’s.

To possibly help, remember that the Social Security Administration now provides access to online benefit calculators through their website, www.ssa.gov.