Published by Taylor Financial Group (for women)
I know that many people count down the days until retirement. And even though I still have many long and exciting years ahead of me right here at Taylor Financial Group, my retirement daydreams sometimes dance around in my head. What about you?How do you picture yourself spending retirement? No matter how your retirement daydreams play out, you should know that maximizing your Social Security is an option to make the most of your retirement income!
Filing for Social Security too early may impact you in a negative way. Since women typically outlive men by five to ten years, we have way more time to plan for and years to fund. Just think about all the expenses you could have in a 5-10 year span (especially healthcare). Yet, unfortunately, there are many women (close to 50%) who file for benefits too early simply because they don’t understand the advantages of delaying their Social Security.
Think of it in terms of numbers. If you start collecting at age 62, you reduce lifetime benefits by 25 percent! Looked at another way, waiting until age 70 nets a 32 percent lifetime gain. The below chart helps break down the numbers and illustrates how waiting to file can make a big difference.
Keep in mind, too, that a spouse can collect “spousal benefits” which amounts to 50% of the higher-earning spouse’s income (if that spouse is also collecting themselves). For example, if your husband has started to collect, you can earn 50% of that money, have your own Social Security benefit grow, and then switch over to your own benefit at age 70! And if you’re reading this thinking, “why would any wealthy woman care about this?” Well, the answer is that Social Security is a tax advantaged income flow that not only benefits you, but can also benefit your children and grandchildren. Consider delaying filing to let your money grow and work more for you in the future.
If you have questions about your Social Security benefits, don’t hesitate to give us a call. After all, we want to help you save money and plan for an awesome retirement!
ThinkAdvisor, Women and Social Security: Maximizing a Critical Income Stream, November 2017
Securities offered through Cetera Advisor Networks LLC, Member FINRA/SIPC. Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity.