What Will Social Security and Your Pension Provide?

If you have been contributing the maximum to the Social Security system all of your working life, you could receive over $25,000 per year at your normal retirement age. Of course, these figures will be adjusted for inflation. If you choose to start receiving your benefits before your normal retirement age, you will receive a reduced benefit. To find out how much you are entitled to, you can request a Social Security Statement (Form SSA-7004) from the Social Security Administration (SSA) website. 

Defined benefit and defined contribution plans 
If you worked for an employer who had a retirement plan, you might be entitled to retirement benefits. There are different kinds of plans in use today. A typical "defined benefit" plan may provide as much as 50% or more of your final average salary at normal retirement age (as defined in the plan document). A "defined contribution" plan will provide you with a lump sum at retirement that can be converted into retirement income. 

For an estimate of your retirement benefits, you can contact the personnel or human resource department of your employer. 
 

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