When it comes to Social Security and understanding the benefits, it can seem overwhelming and even confusing. You may find yourself looking at information or reading articles that provide conflicting information. You, like most Americans, may have a lot of questions about how Social Security works and how to receive the most benefits available to you.
The good news is this; you don’t have to figure it out on your own. Working with a financial advisor to assess your overall retirement income strategy is the best route you can take. Social Security is meant to make up part, usually up to 40%, of your annual retirement income. Its design is to provide both aging Americans and disabled persons a portion of their monthly income to help cover essential retirement expenses.
The biggest question people have regarding Social Security is when to file for their benefits. The answer to that question will be different for each individual. Deciding when to file for Social Security is a substantial decision that should be considered in depth. Factors such as marital status, whether or not you plan to continue working after you’ve reached full retirement age, and other personal details should all be taken into consideration when making the decision on when to file for Social Security. There is not a one size fits all answer.
You can file for partial benefits as early as age 62 but the full retirement age has recently been changed from 65 years of age to 66-67 years of age depending on the year in which you were born. You have the option to delay your benefits until the age of 70, which could in turn help you grow your Social Security income substantially.
So, how do you know what option is best for your particular situation? The first step is to educate yourself on the benefits and opportunities available to you. Secondly, we suggest you meet with a qualified financial advisor who has access to a Social Security Analyzer tool.
A Social Security Analyzer tool allows the financial advisor to simulate different scenarios for you based on your individual information. This is the most customized approach available to you that can show what your potential benefits would be with different filing scenarios. For instance, in some cases choosing to delay benefits until the age of 70 could help you grow your Social Security income by an astounding 76%.
The decision on when to file is one that you will want to take time to carefully consider. While you do have 12 months to change your filing status, this is only available to you one time and you will be subject to repay all benefits that were distributed to you in that time period.
We want you to feel confident and prepared when it comes time for you to file for Social Security. A financial advisor can help you with the following during the consideration stage:
Discuss specific filing options available to you based on your individual information
Help you create a customized Social Security filing options report so that you can see the different options you have
Explain your Social Security options in broader terms as they relate to your overall retirement plan
Provide you the information you need to make the best decision for your situation
Are you ready to speak to a financial advisor about your Social Security options? We are available to help and will do everything in our power to make sure you are prepared to make the decision that is best for you. Please fill out the form below to speak with our financial advisor.