96% of Social Security claimants fail to make the optimal claiming decision. That means they lose out on an estimated $3.4 trillion in potential retirement income ($111,000 per household) because they don’t choose the option that maximizes their income.
That’s why it’s so important to get the most accurate and up-to-date information, assess your personal situation properly, and file for Social Security the right way (and at the right time).
4 Things You Might Not Know About Social Security
(1) Your Social Security Benefits may be taxed...
(2) You may be able to claim at age 62 on your own SS and switch to spousal benefits later to receive a higher benefit.
(3) You can suspend SS benefits and restart them at a higher value later. Maybe you find yourself starting a business or consulting part-time.
(4) You can use Delayed Retirement Credits to maximize your benefits. For every month from your FRA until age 70 that you postpone filing for benefits, Social Security increases your eventual benefit by two-thirds of 1 percent — a total of 8 percent for each year you wait. For example, wage earners who reach full retirement age at 67 but delay claiming benefits until 70 will get an extra 24 percent tacked on to their monthly payment.
(5) BONUS: You may be able to collect SS as a divorced spouse and then wait to claim on your own work history. You can file what Social Security calls a “restricted application” to claim only ex-spousal benefits and postpone claiming your retirement benefits if: You were born before Jan. 2, 1954. You have reached full retirement age (currently 66, gradually rising to 67 over the next several years). You were married for at least 10 years to your former spouse. You are currently unmarried. Your former spouse has filed for his or her own Social Security benefits or your ex-spouse is at least 62 and you have been divorced at least two years.
SHOULD YOU DO NEXT? Create your own online SS account https://www.ssa.gov/site/signin/en/
REQUEST Free No Obligation SS Planning Tool
OTHER ARTICLES/RESOURCES Thinking of retiring? https://www.ssa.gov/osss/prd/pdf/en/55-plus-insert.pdf
COLA raise likely for 2021 -- Kiplinger forecasting 1.2% https://www.kiplinger.com/retirement/social-security/601286/2021-cola-a-raise-likely-for-social-security-recipients-after-all?rid=EML-retire&rmrecid=4628004169&utm_campaign=20200902-retire&utm_medium=email&utm_source=retire
The Agile Investor is a blog that focuses on being prepared and informed within various topics of wealth management, investments, financial markets and investor psychology. Enjoy