Choosing the right Social Security filing approach is low-hanging fruit. In other words, it’s a simple decision that can significantly influence your retirement if done correctly. However, avoid common mistakes such as filing too early (or too late) or the low-hanging fruit may turn out rotten.
Susan is a client who we recently assisted with a timely Social Security filing plan. Susan had an ex-husband who passed away many years ago. Susan is 62 years old and has recently become eligible for Social Security benefits. Even though she believed her deceased ex-husband had no benefits, I advised her to call the Social Security office to double-check, as some benefit is better than none.
She found her ex’s Social Security number and called the Social Security office after being reminded of this. She phoned me thirty minutes later with some good news: she was entitled to about $1,000 per month in benefits from her deceased ex-husband – she had no idea about it. We identified almost $100,000 in undisclosed advantages while also allowing her to optimize her perks – talk about a win-win situation.
While not every situation is as extreme as this, it is very uncommon for one benefit strategy to result in over $100,000 in greater lifetime benefits when compared to inefficient alternatives. With that in mind, below are the factors you should consider while planning your Social Security filing strategy.
- Early Benefits: Individuals can file for their own Social Security payments as early as age 62. Depending on when you were born, this can result in a 20-30% drop in monthly payments. The lifetime loss in benefits isn’t worth the extra early payouts, but filing early makes sense in some circumstances, such as Susan’s.
- Deferred benefits: Today’s pensioners typically retire at the age of 67. However, they can postpone benefits until they are 70 years old, leading to Delayed Retirement Credits (DRCs), and raises a person’s Social Security income by 8% per year. Delaying from 67 to 70 would result in a 24% higher lifetime benefit.
- Benefits for couples: The issue becomes more complicated when a couple has more than one benefit to consider. It is critical to obtain professional advice when deciding on a filing approach.
Here are other reasons to delay your filing:
- If you intend to live longer, filing later is even more critical.
- When you predict substantial inflation, deferring benefits is even more critical.
- Early filing is more important if you plan to have a short life.
- Early filing is more appealing if you anticipate significant investment returns – delaying is more appealing if you predict lesser investment returns.
Whenever you make a financial decision with a long-term impact, it’s critical to analyze, comprehend, and seek professional advice to ensure the most incredible outcome.
Contact Information:
Email: [email protected]
Phone: 3234811328
Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.
Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’
Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.
Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.
He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.
► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
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Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.
