After decades of paying payroll taxes, many people believe that their Social Security benefits are tax-exempt, but this simply isn't the case for a lot of retirees. In fact, the Social Security Administration estimates that 52% of beneficiaries paid income tax on their benefits in 2015 and 56% of all beneficiary families will owe income tax on their benefits from 2015—2050.

When talking about retirement income, we often describe it as coming from three buckets. One bucket is any pensions you may be entitled to. Historically, these have been a critical part of retirement for many workers, but they are becoming less and less common. This means that the other two buckets will become more important over time.

While some people dream of an early retirement at age 60, and others are determined to work well into their 70s, the fact of the matter is that turning 65 is a watershed moment for most Americans. Regardless of when you retire, age 65 is the year when you are first eligible for Medicare. You’re also approaching what the government considers to be your “full retirement age,” that is, the age when you’re eligible to receive your full Social Security benefits.

Single and planning for retirement? Learn how to maximize your Social Security benefits—whether you're never married, divorced, or widowed—with smart claiming strategies.

Social Security is a big asset–one that could potentially exceed a million dollars in accumulated benefits over your lifetime–and it poses a number of complex decisions requiring financial projections as well as knowledge of Social Security rules and regulations. It’s important that you ensure your entire financial plan is ready to withstand potential changes.

Life’s major milestones—graduations, births, weddings and cross-country moves—all require a certain amount of preparation. Retirement is no different. That’s why it’s important to meet with a financial advisor several years before you retire so you can jump right into the retired life once you’re ready.If you’re thinking about retiring sometime in the next three years, you should consider these three things:

Many people enjoy a good horror movie. They sit on the edge of their seat or hide behind a blanket in anticipation of what will happen next. But when it comes to your retirement, the thrills and chills are much less entertaining.

Americans contribute a significant portion of their lifetime earnings to Social Security in exchange for an inflation protected income stream during retirement.