Social Security: when your benefit claims basics

Retiree generated from any number of sources, which may vary from, such as pensions, 401 (k) income, an IRA, or perhaps rent. Income

However, a common source of most retirees social security. This is why the question of a more frequent we hear from pre-retirees and retirees is: When is the best time to take it?

This is a big problem, because the decision a lot of people do not realize is how complexity. A mistake could cost you thousands of dollars over your lifetime.

Therefore, when should you take Social Security? I can say with great confidence and clear, the answer is: It depends.

Yes, I know; not what you want to hear. Unfortunately, no one wrote back uh apply to everyone. But you can gather information to help you make a more informed decision.

From the ground

First of all, let’s establish the basics. You probably already know the basic rules, but to make sure we understand the basics of before we get into the more complex it is very important.

• In general, you can take Social Security early is 62 years old, unless there are other special circumstances apply, such as the benefits of the widow. Benefits claims at this early benefit is that you can reach a good monthly check, before you reach full retirement age four to five years.
• The disadvantage is that you will receive a reduced amount – 75% of all your benefits – this is a permanent reduction, no matter how often you lift me. In addition, if you continue to work, the government how much money you can without restriction punishment. For 2019, the annual income limit is $ 17,640. Every $ 2 you exceed the limit, $ 1 is deducted from your benefit. (After you reach full retirement age, you end up getting the money back.)
• You have to wait until your full retirement age, but let’s say. For most people, these days, that is, somewhere between age 66 and 67 at this point, there is no income limit, so you can continue working, threaten your full-time job and social security penalties.
• Finally, you can delay claiming your benefit, ifYou do, you will be rewarded bigger monthly check. However, there is no advantage to wait for nearly 70 years, since the benefits of the POINT stop growing.

96 possible starting date

If you do the math, you will find that between the ages of 62 and 70, 96 months, you can apply for Social Security Ministry, as well as the past few months can result in different calculation for your interest.

So, how can you know which of these 96 months will you make your move at the right time? One way is to do a break-even analysis, it can help you compare how much money you will, benefit by picking a different date to start collecting claims in your life. How to do this information may be able to help you in a variety of web sites, or your financial professional.

Several strategies to maximize the benefits

In addition to these 96 options, there are other strategies that can help you increase the potential for more income, your Social Security check. Several of these include:

• Botch. We talked about this, but it bears repeating: If you choose to delay the benefits of filing, the amount of money you can receive may increase.
• Given the benefit of spouse. If you do a lot less than your spouse, you may want to request a spouse of points of interest, rather than their own interests. Social Security Administration should be able to tell you what would be your big check. To declare interests of a spouse, but your spouse generally must have received his or her retirement benefits.
• Claimed that surviving divorced spouse benefits. When you divorce, you may not I do not think your ex-spouse’s Social Security benefits would have anything to do with you. However, this may not be true. If your husband or wife dies, you might want to look at the benefits of claiming that doing so would lead to a higher payment for you. If you remarry before age 60, however, the benefits of doing so will not apply.

You can not help maximize the benefits of the Social Security Administration number not help much. They can tell you, your monthly check will be how much, or whether you are eligible for special benefits, but they also did not provide what is bestThe choice is advice to you.

Your financial professionals, however, should be happy to help you get the raise you have received the highest possible benefits of the possibility of providing guidance.