Social security is one of the most misunderstood benefits available. Many people believe that they should take the benefit as soon as it is available. While doing so may be the correct course of action to take, it is important to look at your situation, as well as other strategies for drawing social security.
First, let’s take a look at the three of the most common forms of Social Security. Each of the following benefits has a place, and can provide you the best benefit.
- A person can receive benefits as a worker who paid into the system.
- A person can claim benefits as a spouse.
- A person can receive benefits as a survivor of a spouse who has passed away.
Before making any decision in regards to social security, a person should determine a number of things.
- What is the normal retirement age?
You can claim benefits at age 62, but at a reduced amount.
- What is your current medical status, as well as your family history?
If you are in poor health, you may want to claim benefits early. It is also important to consider what your family medical history is. Does your family have a history of living well into their 80’s, or a history of genetic illnesses?
- What is your current financial status?
What type of retirement assets do I have? How much do I need to live the type of retirement lifestyle that I desire? What assets do I have to meet these requirements?
- What is your spouse’s age?
Even a slight age difference between couples can lead to opportunities, as well as challenges, when determining when and who should file for benefits.
So… should you draw early at 62? Should you wait until your full retirement age? Should you wait until age 70, and then receive a much larger benefit? Or, should you file for benefits (to open doors for your spouse) and then suspend receiving benefits for yourself? You can also receive benefits under a spouse’s account, under certain conditions, while your individual benefit continues to grow.
Making the wrong decision can seriously affect your retirement ages. Contact us to help you determine what strategy fits your situation. You only get one change to retire. Let’s do it right.