It’s always great working with clients who have saved diligently for retirement.
Ample savings coupled with a long life expectancy in many cases argues for delaying social security benefits until age 70 to maximize your lifetime payout.
This strategy can result in not only higher social security income, but significant tax savings opportunities as well.
Imagine you have taken these steps to carefully plan out your golden years and a last minute filing mistake reduces your lifetime benefit.
Social Security Horror Story
This is the latest Social Security horror story that is playing out:
“If someone delays claiming their retirement benefit until it reaches its maximum value at age 70, their monthly benefit will be 76-percent higher — in inflation-adjusted terms — than if they claim at age 62, which is the earliest age at which normal retirement benefits may be taken. Now, we’ve just learned, to our amazement, that Social Security is denying the delayed benefit wishes of some applicants and is instead forcing them to accept six months of retroactive benefits and a lifetime of lower benefits thereafter. Some beneficiaries may not even be aware that this is being done to them. This is a colossal injustice.”
Unfortunately, many well-meaning SSA employees give advice or make changes to benefit claims that are not in the best interest of Social Security recipients. The Social Security system is very complex.
Compound that with the unique financial situations of each individual and the decisions can become mind-boggling.
Social Security Strategy
There are some great resources for learning more about Social Security claiming strategies such as the book “Get What’s Yours: The Secrets to Maxing out Your Social Security,” and Mary Beth Franklin’s wealth of knowledge at Investment News.
When it comes to Social Security, everybody has an opinion. Many are worried that the program won’t last so they want to claim benefits as early as possible. Others advocate delaying benefits for the highest lifetime payout.
However, it’s important to keep in mind that even the best sounding advice may not be what is most appropriate for your personal situation.
Bad advice surrounding Social Security abounds and it is very important to take all advice with a grain of salt, consider the source, and do your research to find out if the advice is actually in your best interest.
While a particular strategy may sound great and may be the best thing for your neighbor, it may not be right for you. Potential social security strategies should always be analyzed in the context of your overall financial plan.
Contact us today for help making the most of your retirement income.
