Social Security benefits. Social Security benefits will determine how you live in retirement, or whether you can take early retirement. There are a number of factors that determine what the monthly retirement check will be.

Your retirement payments are determined by earnings history, retirement date, birthdate, marital status, inflation and politics.

Social Security benefits are more a function of earnings history than any other factor. The higher the Social Security wages, the higher the benefits. In many cases, working while collecting benefits will increase the next year's monthly check amount. Regardless of how high you earnings have been, if you have not worked at least 35 years, you will be penalized. If you have not worked 40 quarters (10 years), your benefits will be diminished. If one retires before the normal retirement date and continues to work, the monthly payment might be reduced under certain circumstances.

The retirement date affects your Social Security benefits in several ways. If you retire early, your benefits will forever be reduced. If you retire late, your benefits will forever be increased. If you have not reached the normal retirement date and you are receiving benefits and are still working, your benefits might be reduced.