When
to start? Should I continue to work? How can I maximize my benefit?
Provided by Taylor McClish
Social Security
will be a critical component of your financial strategy in retirement, so
before you begin taking it, you should consider three important questions. The
answers may affect whether you make the most of this retirement income source.
When to Start? The Social Security Administration gives
citizens a choice on when they decide to start to receive their Social Security
benefit. You can:
* Start benefits
at age 62.
* Claim them at
your full retirement age.
* Delay payments
until age 70.
If you claim
early, you can expect to receive a monthly benefit that will be lower than what
you would have earned at full retirement. If you wait until age 70, you can
expect to receive an even higher monthly benefit than you would have received
if you had begun taking payments at your full retirement age.
When researching
what timing is best for you, It’s important to remember that many of the
calculations the Social Security Administration uses are based on average life
expectancy. If you live to the average life expectancy, you’ll eventually
receive your full lifetime benefits. In actual practice, it’s not quite that
straightforward. If you happen to live beyond the average life expectancy, and
you delay taking benefits, you could end up receiving more money. The decision
of when to begin taking benefits may hinge on whether you need the income now
or if you can wait, and additionally, whether you think your lifespan will be
shorter or longer than the average American.1,2
Should I Continue to Work? Besides providing you
with income and personal satisfaction, spending a few more years in the
workforce may help you to increase your retirement benefits. How? Social
Security calculates your benefits using a formula based on your 35
highest-earning years. As your highest-earning years may come later in life,
spending a few more years at the apex of your career might be a plus in the
calculation. If you begin taking benefits prior to your full retirement age and
continue to work, however, your benefits will be reduced by $1 for every $2 in
earnings above the prevailing annual limit ($17,640 in 2018). If you work
during the year in which you attain full retirement age, your benefits will be
reduced by $1 for every $3 in earnings over a different annual limit ($45,360
in 2018) until the month you reach full retirement age. After you attain your
full retirement age, earned income no longer reduces benefit payments.2,3
How Can I Maximize My Benefit? The easiest way to
maximize your monthly Social Security is to simply wait until you turn age 70
before claiming your benefits.1,2
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
This material was prepared by MarketingPro, Inc., and does not
necessarily represent the views of the presenting party, nor their affiliates. This
information has been derived from sources believed to be accurate. Please note
- investing involves risk, and past performance is no guarantee of future
results. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
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purpose of avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All indices are unmanaged and
are not illustrative of any particular investment.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 - nerdwallet.com/blog/investing/take-social-security-benefits/
[5/18/18]
2 -
thestreet.com/retirement/social-security/maximum-social-security-benefit-14786537
[11/20/18]
3 - fool.com/retirement/2018/12/01/4-things-you-need-to-know-about-filing-for-social.aspx [12/1/18]
3 - fool.com/retirement/2018/12/01/4-things-you-need-to-know-about-filing-for-social.aspx [12/1/18]