A little planning goes a long way
Social Security may not cover all your retirement needs, but it’s a critical part of your income strategy. The choices you make before and after claiming can mean the difference between just getting by and getting what you’ve earned. The good news? With a few smart moves, you can make your benefit work harder for you.
Here are seven ways to make sure you’re not leaving money on the table.
1. Know your full retirement age
Full retirement age (FRA) is the age at which you’re eligible to receive 100 percent of your Social Security benefit. For most people today, that falls between 66 and 67, depending on your birth year.
Claiming before FRA permanently reduces your monthly benefit. Waiting until after can increase it. Either way, it all starts with knowing your number.
2. Wait as long as you can
You can claim benefits as early as age 62, but you’ll receive less each month. On the other hand, for every year you wait beyond your full retirement age, your benefit grows by about 8 percent until age 70.
If you’re in good health and have other income sources, delaying can pay off in the long run.
3. Coordinate with your spouse
Couples have unique planning opportunities. Sometimes it makes sense for the lower earner to claim early while the higher earner delays. That strategy provides income now while maximizing the survivor benefit later.
Spousal and survivor benefits can be complex, so this is a great area to get professional advice.
4. Check your earnings record
Your benefit is based on your highest 35 years of earnings. If the Social Security Administration has incorrect or missing information, your check could be smaller than it should be.
You can check your earnings record anytime by logging into your account at SSA.gov. It’s quick, easy, and important.
5. Understand how working affects benefits
If you claim Social Security before your full retirement age and continue to work, your benefit may be temporarily reduced if your earnings exceed certain limits.
Once you reach full retirement age, those reductions go away. But if you’re planning to work and claim, make sure you understand how your paycheck will affect your check from Social Security.
6. Don’t forget about taxes
Social Security income may be taxable, depending on your overall income. In some cases, up to 85 percent of your benefit could be taxed at the federal level.
Coordinating your withdrawals, pensions, and Social Security timing can help you keep more of what you receive.
7. Get personalized advice
Social Security isn’t one-size-fits-all. Your ideal claiming strategy depends on your earnings history, health, marital status, and income needs.
Whether you work with a financial advisor or a Social Security specialist, a tailored plan can help you make confident decisions and avoid costly mistakes.
Final thought
You only get one shot at claiming Social Security. These seven tips can help you make that decision with clarity and purpose. A few smart moves today can lead to more peace of mind tomorrow.
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