When approaching retirement one starts to look at many variables of when then can start their retirement. They anticipate receiving social security to help in retirement, most know they are going to receive social security and the amount they will receive depending on the year they start taking it. Social Security seems to be a mystery to most outside those two common pieces of knowledge. How Social Security works and what it can or can’t do for your retirement seems to be difficult to figure out and might be hard to understand all that this one part of your retirement income can do for you.
The first thing we need to be educated with is the best time to take Social Security benefits. This can be the difference between receiving hundreds of dollars or more a month in retirement benefits. The truth is everyone situation is different, but if possible it is better to defer your social security benefits till age 70 in order to receive the maximum benefit allowed. The second reason to defer your social security if you can it helps keep you taxable income lower once you start taking it as long as you stay within the guidelines of earnable income.
The next thing people need to understand when it comes to social security is when your spouse passes away? What happens when my spouse passes on? What happens to their benefit? The answer to these questions is that when your spouse passes on you will receive the higher of the two social security benefits. Yes, you will not receive both benefits once your spouse has passed, but you will receive the higher of the two benefits. This goes back to deferring the highest spouses benefit till age 70 .It will allow you receive more and if your spouse passes on you will be able to receive the larger benefit.
Although we have answered a few of the most common questions with social security today .There is still a lot about social security that people don’t know. The first step to truly figuring out social security and how you can maximize the benefits is finding an educated advisor. An advisor who will educate you on social security and how it works, but also help you figure out where it would fit in your retirement . Knowing that Social Security benefit plays a big role in most Americans retirement life’s one should find advisor who can educate them on this crucial piece of the retirement puzzle.
Josh is frequently seen in FOX, NBC, CBS, ABC, The Chicago Chronicle, and CBS Money Watch. In his years as a financial professional, Joshua has seen the lifelong impact of retirement preparation – or lack of preparation—