Use technology to optimize your social security benefits

Interests are adjusted annually for inflation and they are not affected by fluctuations in financial markets. Perhaps most importantly, benefits are guaranteed for life, which makes Social Security an important form of insurance against the risk that you’ll run out of money at the end of your life. That can be especially important for women, who tend to live longer than men but also earn less, creating lower levels of retirement assets.

For many people, the best answer is to delay claiming for as long as possible, to age 70.

Your monthly Social Security benefit amount depends on when you apply. You can claim retirement benefits as early as age 62, or wait until age 70, but the amount depends on your full retirement age – the point at which you are eligible to receive 100 percent of your benefits. benefits you have earned. Currently, the full retirement age is 66 and a few months for most people. If you claim after full retirement, you will receive credits for late filing; request earlier and there will be reduced requests soon. The full-age claim has a 33% higher monthly income value than the 62-year-old claim and the 70-year-old claim has a 76% higher value.

“Most people consider it premature,” says Dr. Kotlikoff. “About 6% of us wait until we’re 70, but it should be 85%.”

But there’s no one-size-fits-all answer – especially for married couples who should have a coordinated filing strategy. Mike Piper, a certified public accountant Open Social Security, considered by many to be the best free online claim tool.

Early application can also be a reasonable option for those who Early retirement due to job loss or poor health. And the Social Security claim should be part of a broader analysis of expected retirement income from retirement accounts and other annuity-style income – such as a defined benefit pension. Taxing retirement income can also be an important factor in the success of your plan.

Start your analysis with your Social Security statement. This important document from the Social Security Administration lists your annual income since you started contributing to Social Security and tells you how much you can get at your current age, full retirement age or 70 – numbers are important for any “what-if” claims scenario you might want to run. It is important to establish a Free account at the regulator’s website, because the statements are send by post Only for people 60 years of age or older.

The Social Security website also provides an information section about claiming benefits and very basic, free retirement estimate The feature can calculate benefits based on your earnings history. This tool focuses on individual interests – not spouses or survivors – and does not count cumulative lifetime benefits. It also does not allow side-by-side comparison of claims options. Use technology to optimize your social security benefits

Fry Electronics Team

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