Key Points to Keep in Mind When it Comes to Social Security

When you are deciding when you should begin your Social Security benefit based on your personal circumstance, there are some important things to keep in mind.

When you are developing your overall retirement income plan, you should consider your life expectancy/ health, projected income needs, whether or not you plan to work and survivor needs. If you apply for your Social Security benefit early, your benefit will not only start lower but it will stay lower for the rest of your life. Contrary to a myth circulating out there, your Social Security benefit does not go up when you reach age 66. COLAs will magnify the impact of your early or delayed retirement and the longer you expect to live, the more beneficial it is to delay your benefits. If married, you need to coordinate your spousal benefits to maximize Social Security.

 Your decision to start your Social Security benefit impacts survivor benefits as well. Delaying your own benefits may give survivors more income. If you do not think your Social Security benefits will be enough to live on, consider other strategies you may need to explore to supplement your projected benefit. A spousal planning analysis can help you and your spouse determine which of the various Social Security strategies may work best for you in your particular circumstance. 

Your overall retirement income plan should take into consideration Social Security in the context of pensions, IRAs, 401(k)s, your investment portfolio and work related issues to maximize your retirement income. Let us help you protect your nest egg and maximize your retirement income!