As a critical component of your financial strategy in retirement, consider these important questions in order to make the most of Social Security as a retirement income source.
When to Start... The Social Security Administration gives citizens the option to start their Social Security benefits at age 62, claim them at full retirement age, or delay payments until age 70.
Claiming early will result in a lower monthly benefit than what would be earned at full retirement. Waiting until age 70 results in an even higher monthly benefit than would have been received at full retirement age.
When researching what timing is best for you, remember that many calculations the Social Security Administration uses are based on average life expectancy. The average life expectancy will eventually result in full lifetime benefits. Living beyond the average life expectancy plus a delay in taking benefits could result in more money. When to begin taking benefits may hinge on your need - if you can wait, and whether you think your lifespan will be shorter or longer than the average American.
To Continue to Work... Work can provide income and personal satisfaction, and spending a few more years in the workforce may help increase retirement benefits. How? Social Security calculates your benefits using a formula based on your 35 highest-earning years. If those years come later in life, spending a few more years at work might be a plus in the calculation. Taking benefits prior to full retirement age while continuing to work will reduce benefits.
How to Maximize Benefits... The easiest way to maximize your monthly Social Security is to simply wait until you turn age 70 before claiming your benefits.
Every individual has a unique scenario, I can assist you with creating a Retire Abundantly Roadmap to meet your retirement goals. Contact me if you are interested in attending one of Social Security Workshops!
Phone: 856-203-6911
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