Maximizing Your Social Security Makes a Big Difference

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Taylor Financial Group

How do you picture yourself spending your years in retirement? Travelling, gardening, or spending time with grandchildren? No matter how your retirement daydreams play out, you should know that maximizing your Social Security is critical to making the most of your retirement income!

Filing for Social Security too early may impact you in a negative way. People are living longer lives and have way more years to fund. Just think about all the expenses you could have during those 25-35 years in retirement, especially when it comes to healthcare. Unfortunately, 42% of people file for early benefits 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 chart below helps break down the numbers and illustrates how waiting to file can make a big difference.

 

And if you are married, then you should always think about Social Security from a “couples” point of view. And be careful because there are 8,000 options to choose from! Keep in mind 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!

Social Security is also a tax advantaged income flow that not only benefits you, but can also benefit your children and grandchildren. While it’s not one of the more well-known benefits, under the right conditions, grandchildren can receive a benefit based on the work history of a grandparent. Furthermore, children can receive Social Security benefits because one or both of their parents are either disabled, retired or deceased. Most people don’t know about the qualifications and rules for this benefit, so they don’t know to apply for the children in their lives.

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 a successful and happy retirement!

 

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

4 Hurdles in Retirement Beyond Your Investment Portfolio

Becoming hyper-focused on only one aspect of a problem is pretty much never a good approach. A racecar driver who only focuses on speed and ignores strategy won’t win races, at least not many of them. A carpenter who only hammers in nails won’t build strong structures. 

Your Silicon Valley Bank Questions Answered

You likely have heard about the recent Silicon Valley Bank (SVB) collapse and probably have questions. Here, we provide you with unbiased answers to your questions.

Thinking About Retiring Early? 8 Things to Consider First

Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner We’ve all asked ourselves whether it’s too early to retire (usually after a particularly challenging commute or dealing with a difficult client).  You may have even gone so far as to take a sneak peek at your account statements …

Weekly Update: February 27th

By Debra Taylor, CPA/PFS, JD, CDFA™ Dear Friends, For investors, it may feel like déjà vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, the numerous market swings last year were driven by ever-changing expectations around the Fed – …

1 2 3 224 225 226

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation