Once you retire, one of your primary sources of income will likely be Social Security retirement benefits. If you are a U.S. citizen and have paid taxes to Social Security while working for at least ten years when you reach retirement age, you can claim your retirement benefits.
Understanding how and when to start claiming your benefits can be confusing. There is a balance between the urge to sign up as soon as possible and the knowledge that waiting to claim them can increase your payout. Follow the advice of a professional financial advisor to help with your specific situation. These are some general tips to help you maximize your Social Security benefits.
Work As Long As Possible For Social Security Maximization
Your benefits are based on your 35 highest-earning working years. Most people will be at their highest earning levels in their later years, so working up until your full retirement age will help to increase your average. This will help you to boost your benefits.
Wait Until Full Retirement Age
Generally, you can start receiving your Social Security benefit at age 62 unless you are disabled or have a Survivor benefit. In which case, you may be able to collect a benefit earlier. Under normal circumstances, claiming your benefit at age 62 will reduce your benefit, which can be as much as 30%. Benefit reductions are based on your Full Retirement Age (FRA). Your FRA is determined by your date of birth. Please find out more inside our comprehensive Social Security Maximization Report!
Delay Benefits Until Age 70
You can delay your benefit until age 70. Your Full Retirement Age benefit will increase by 8% per year every year after your FRA. This increase is calculated monthly, so the more you become eligible for each month you wait.
Avoid Excess Income
You will be charged income taxes based on how much money you make in retirement. Most people will have to pay income taxes on retirement income. It can come as a surprise to most folks that Social Security benefits can be taxed. Here’s a quick breakdown to see if you may become taxed on your Social Security benefit. Between $32,000 and $44,000 for married couples and between $25,000 and $34,000 for individuals will result in 50% of your benefits being included in your gross income. Income for married couples above $44,000 and individuals above $34,000 will result in 85% of your benefits being included in your gross income. You can dramatically reduce your income taxes on your help by limiting your income from other sources during retirement.
There are more rules to Social Security tax; ask us for your Social Security Maximization report today to find out more!
Check If You Qualify For More
Social Security will not notify you if you are qualified to receive additional benefits. If your children are under age 19 and dependent on you, you can receive a dependent child benefit. You can claim spousal or divorced spousal benefits to claim half of your spouse’s earned honors. If there were a big difference in incomes between spouses, this benefit would ensure you receive the maximum support available.