How to Strategize for your Social Security Benefits?

Understanding the Importance of Social Security Planning

As life expectancy has grown, your retirement can now last between 20 and 30 years. So, social security planning is critical. No matter how much money you have, it can make a difference of hundreds of thousands of dollars.

How Timing Affects Your Social Security Benefits

For example, if you retire at age 62 and pass away at age 86, you’ll receive at least 25% less for 24 years. But if you wait to retire until age 70, you’ll receive 32% more for 16 years. If your retirement income at age 66 was $2,000 per month, this could be a difference of over $200,000 during your lifetime.

The Hidden Costs of Claiming Social Security Early

Arriving at a decision on when to retire is not easy. If you retire early, it could affect your spouse’s benefits and wages, and other taxable income could cause social security benefits to be taxed at a to 85%.

Creating a Tax-Efficient Social Security Strategy

Proper planning takes all of these factors into account to determine a social security strategy. For instance, a repositioning of assets could reduce taxable income and provide for more reliable monthly income.

Why You Should Work With a Financial Advisor on Social Security Planning

With over 500 different combinations of factors affecting benefits, it makes sense to talk to a financial advisor and get it right.