For your entire working life, FICA (Federal Insurance Contributions Act) has been taken money out of your paycheck for Social Security, and our goal is to make sure you receive the maximum benefit. We create strategies for our clients to help them take advantage of the Social Security benefits throughout their life in retirement. Here are a couple quick tips to review:
- Don’t claim Social security until you have run a Social Security optimization report on your situation.
You’ve likely been paying into Social Security for your entire working life and deserve to earn the maximum legal benefit that you’re entitled to. Navigating Social Security can be a daunting task as rules change and benefits vary depending on a multitude of factors. Have your financial advisor run a Social Security optimization report and provide you with a plan for when to file, how to file, and what to expect based on your individualized circumstances.
- Consider the pros and cons of claiming early, late, or at full retirement age.
While it may be tempting to take your social security benefit when you turn 62, waiting to claim your benefit will likely pay off higher benefits in the long run. Not only could you add up to 8% every year that you delay collecting up to age 70, but your spouse will also be entitled to 100% of your Social Security benefit should you predecease him/her.
- Understand the Social Security benefit formula as it relates to your individual situation.
Social Security pays you based on your highest 35 years of inflation-indexed earnings. If you have worked for less than 35 years, Social Security will mark the excess as zero in the average. It may be advantageous to work a few years longer if you are looking to increase your benefit as you could in replace any of your lower income years in the Social Security equation with presumably higher earnings.
The best way to claim Social Security depends on your individual situation. That’s why a professional helping you plan for retirement is just as important as the plan itself. We’re here to guide you not just to retirement, but through it. Sign up for a complimentary financial review to get started on your Social Security maximization plan.
Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon
Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.
Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.
The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.