How Can Social Security and Retirement Planning Work Together for Your Benefit?

Why Social Security Alone Isn’t Enough for Retirement

Many people believe that Social Security will pay for their retirement, but Social Security was designed to be just a complement to a pension and investments. So don’t rely only on Social Security for your retirement because it probably won’t be enough to maintain your current lifestyle.

The Importance of Maximizing Social Security Benefits

However, maximizing Social Security is important. It could mean more than $100,000 extra in retirement. The best way to maximize your Social Security payments is to wait to begin drawing benefits until age 70. When you wait until you’re 70 instead of age 62, you can increase your benefits by up to 76%.

Understanding Required Minimum Distributions (RMDs) and Taxes

However, remember, at age 70 and a half, you must begin taking required minimum distributions from an IRA, which also adds to your taxable income. Be aware that in retirement, tax deductions may be reduced, resulting in more taxable income.

Coordinating Social Security, Investments, and Pensions

You can plan for your Social Security, investments, and pensions to all work together to reduce your tax burden. Sustainable lifetime income is the goal, so you need to have a plan for all sources of income to work together for maximum benefit.

Get Help Maximizing Your Retirement Income Plan

Need help with your plan? Contact us today. We’re here to help.