Many retirees rely heavily on their Social Security benefits as their primary source of income. And if you expect to rely on your benefits in retirement, it pays to do everything you can to improve them.
Indeed, one strategic move on your part could result in a higher Social Security benefit. But whether that is the best path to take is another matter. Here’s how to significantly enhance your Social Security benefits.
Are you prepared to wait?
When it comes to Social Security, you can file at any age. You can sign up as early as 62 years old and file as late as 70 years old. Technically, you can wait until you’re 70, but there’s no financial advantage.
This year, the maximum Social Security benefit is $4,194 per month. But that assumes you’ve waited until you’re 70 to file.
If you are eligible for Social Security’s maximum monthly payment but claim benefits at age 62, you will receive only $2,364 per month. The real difference between the two is $1,830.
Consequently, delaying your application can be your key to a higher monthly Social Security income. But waiting until you’re 70 years old to enroll in benefits is not always the greatest idea.
As an example, if you’re unhappy and unhealthy at work, you might want to consider retiring earlier. Delaying your Social Security filing may result in you being sentenced to continue working, even if it has negative health consequences.
If you are in poor health, delaying your Social Security filing may increase your monthly benefits. However, it will not necessarily benefit you in the long run.
If you believe you won’t live such a long life, the general rule is that it’s best to enroll in benefits early rather than late. As a result, you’re more likely to receive more money from Social Security over your lifetime.
Should you try to increase your Social Security benefit?
If you don’t mind working until you’re 70 years old and think you’ll live a long life, waiting to take Social Security until you’re 70 could be very smart. It may add an extra $1,830 to your retirement income every month.
However, consider whether a delayed filing makes sense before you go that route. You may decide that the extra retirement money isn’t worth risking your health. On the other hand, you might find that your savings are in better shape than you thought. You’d prefer to start receiving Social Security benefits sooner to conclude your profession and get back to accomplishing all the things you’ve put off due to your busy employment.
The advantage of locking in a higher Social Security benefit is that you will receive that larger monthly payment for the rest of your life. But this doesn’t mean there aren’t better alternatives for filing that could work for you.
It will also be best to speak with your financial analyst before deciding.
Contact Information:
Email: [email protected]
Phone: 8132032515
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
