People who wait till they hit 70 before claiming their social security receive increased retirement income and benefits.
But despite most people knowing this, USA Today reports that 34.3% of Americans choose to claim their social security benefits as soon as they hit 62—which is the minimum age at which you become eligible.
If you’re nearing your retirement age, it’s important to have a plan in place that will allow you to make your retirement income last as long as possible.
That’s why strategically maximizing social security benefits is necessary if you want to live a financially stable retirement. The following are some helpful tips to do so:
Know Your Full Retirement Age
Your work history and income are not the only factors that are used to calculate your social security benefits. Depending on the year you were born in, the Social Security Administration will decide your full retirement age at which you become eligible to claim social security benefits. The number can vary between 65 and 67.
Knowing your exact retirement age will help you in making a more informed decision about your social security claims.
Delay Your Claims
According to AARP, if you claim your social security at the age of 62, your monthly benefits will decrease by 30%—permanently. By waiting until you’re 70, you’re likely to increase your retirement income by 25% or more, depending on your work history.
If you’ve already started collecting benefits, there’s no need to worry. Between your full retirement age and when you hit 70, you can voluntarily suspend your social security in order to maximize your earnings.
Your marital status can be useful when it’s the time to collect social security benefits. Couples who were or have been married for over 10 years become eligible to not only collect their own benefits, but can also claim spousal benefits.
Spousal benefits can increase your retirement income by up to 50%. To maximize your spousal benefits, you’ll have to decide which spouse is going to claim their social security benefits first. The Independent Insurance Agents FL at IFG Insurance Services suggest that the spouse with the higher income should wait until the age of 70, while the spouse with the lower income can claim their benefits at an early age.
Have You Considered Working In Retirement?
There’s no rule which says that you can’t work while claiming your social security benefits. But you have to be mindful of your earnings if you’ve claimed your benefits before your full retirement age.
This places restrictions on how much you can earn yearly to remain eligible for social security benefits. The limit for 2019 is $17,640.
However, when you reach your full retirement age you can make as much money as you want without a decrease in your monthly retirement income. Moreover, your social security benefits may be recalculated to compensate for the months you earned more than the limit at the time of reduced benefits.
If you’re looking for Retirement Life Insurance FL, get in touch with the insurance agents at IFG Insurance Services. Our experts can help you come up with an efficient retirement plan with our retirement planning services.