Social Security? Get It Right!

Only about 4% of retirees make the optimal Social Security claiming decision. This results in a loss of wealth of roughly $2.1 trillion for current retirees who made suboptimal decisions.*

You’ve spent decades contributing to your Social Security benefits. As you approach retirement, the decisions you make regarding when to file for Social Security can significantly impact your financial future and play a crucial role in your broader retirement income plan.

 

Understanding Your Benefits

Historically, the full retirement age for Social Security benefits was 65. Today, it ranges between 66 and 67 for most Americans. You can choose to receive reduced benefits as early as age 62 or delay your benefits until age 70 to increase your monthly income.

Filing Options and Other Considerations

Navigating Social Security’s opportunities and rules can be complex. The timing of your filing impacts not only your income but also tax implications, especially since Social Security benefits can be taxed again.

Paying Taxes on Social Security

Social Security benefits became taxable starting in 1984 for individuals with a combined income over certain thresholds. The 1993 amendments introduced a second tier of taxation, subjecting up to 85% of benefits to tax. Because these income thresholds haven’t been adjusted for inflation, more seniors face these taxes each year.

Working in Retirement

If you plan to work while collecting Social Security benefits, your benefits may be reduced if you start before reaching full retirement age. However, this withheld amount will be recouped once you reach full retirement age, at which point there are no earnings limits.

Maximizing Your Social Security Benefits

Social Security decisions are permanent after 12 months, making it crucial to choose wisely. Whether to file early or wait for maximum benefits depends on your specific financial needs and circumstances.

One of the Most Important Decisions of Your Lifetime

For a comprehensive understanding of your Social Security options and benefits, consult a specialist. We recommend getting your options analyzed by one of the largest retirement institutes in America. This service and the analysis is free and comes with no obligation.

Feel Confident in Your Decision!

Find out more here.

Source: United Income, Inc., a Capital One company