Social Security benefits are the bedrock of retirement income for many Americans as they approach the end of their careers. As a vital part of a retirement plan, it’s important to understand what Social Security can mean to you and your family’s financial future.
- Find out your “full retirement age” before you apply for benefits. The earliest you can start claiming benefits is 62. However, claiming before your full retirement age will result in a reduced payout. If you delay collecting Social Security past your full retirement age, you can collect more than your normal payout up to the maximum benefit at age 70.1
- Find out how much income you can expect in retirement no matter how old you currently are. By understanding how much you can expect can help you determine how much additional income you’ll need. You can find out what you can expect to receive by setting up a my Social Security account with the Social Security Administration.
- Learn how to increase your benefits by delaying collection. For every year beyond your full retirement age that you delay collecting benefits, you’ll increase the value up to 8%.2
- Think about whether you’ll be working while collecting benefits because if your income exceeds a certain amount, your benefits could be taxed up to 50% or 80%.3
Given today’s longevity, it’s now more important than ever to maximize your Social Security benefits, as well as consider other alternatives that are best for your situation. Reach out to us and together, we’ll formulate your Social Security strategy and overall retirement plan for those days ahead.
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[1] https://www.investopedia.com/retirement/social-security-changes/
[2] https://www.investmentnews.com/article/20140225/BLOG05/140229928/rate-of-return-analysis-shows-value-of-delaying-social-security
[3] https://www.marketwatch.com/story/how-to-collect-social-security-and-keep-working-2011-03-21