Let’s talk Social Security, a hot button topic as baby boomers are entering their golden years.
The most common question our retiring clients have when we talk Social Security is, “Do I take the benefit when I retire, or should I wait until age 70 to maximize it?” Simply put, no answer is right for everyone. It takes careful consideration of living expenses, retirement income streams (think 401(k)’s/IRA’s/Pensions), and Social Security benefits. Most important though, are your goals for retirement.
Below, check out some quick Social Security details you will want to consider when thinking about a strategy that fits your household the best.
-Each year you wait to claim benefits after Full Retirement Age (66-67) you will see an 8% increase in your monthly benefit amount.
-Married? Your significant other will most likely be eligible for a spousal benefit at Full Retirement Age (FRA). Example… Your monthly check is currently $3,800 and your better half reaches FRA. At this point he or she is eligible for $1,900 a month unless their own benefit is larger.
-According to www.ssa.gov the Social Security trust fund reserves are set to be exhausted by 2037 at current rates of income versus expenditures. https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html#:~:text=As%20a%20result%20of%20changes,are%20projected%20to%20become%20exhausted
-In certain circumstances a portion of your Social Security benefit bay be taxed, unlike income derived from your Roth IRA or Roth 401(k).
Your Social Security strategy should not define the goals you have for when your working years are over. Rather, it is just one consideration you should make when planning your financial future post-employment. At Legacy Wealth Management, our duty is to consider every variable in the equation of your retirement goals and to give you a roadmap to meeting or exceeding them. Our holistic approach paired with unique software tools will paint a picture of your financial future that is clear and actionable.
Let us know how we can help you with any and all Social Security questions.