Any part of a thorough income plan needs to include your social security. Many baby boomers don’t know how they can strategically plan to take social security in order to maximize benefits. This analysis has been a growing service that we have offered our clients. The most common social security questions that we are asked:
- Will Social Security be there for me?
- How much can I expect to receive?
- When should I apply for Social Security?
- How can I maximize my benefits?
- Will Social Security be enough to live on in retirement?
- What am I entitled to as a spouse?
- How much is my social security reduced by taking before my full retirement age?
- What if I wait until after my full retirement age?
- How much will my spouse get if I die?
- Will I be penalized by earning income after taking social security? How much?
Some of these questions are easier to answer than others. Your expected amount is estimated from the Social Security Administration and available to view online. The more difficult questions to answer are regarding maximizing your benefits and incorporating social security into your retirement income plan. In order to maximize social security, we utilize many strategies including “file and suspend”. We use software programs to run an analysis to help you determine when and if you should take your benefits.
Many people do not realize the value of their social security. For example, if you are currently set to receive $2000 per month in benefits and you live:
10 more years…you will receive over $300,000 in lifetime benefits
20 more years…you will receive over $650,000 in lifetime benefits
30 more years…you will receive over $1,000,000 in lifetime benefits
(estimates a 2.5% average annual COLA. The COLA is not guaranteed by the SSA)
When you add it all up, your benefits can equate to a significant amount of money over your lifetime. In addition, these numbers can be drastically affected based on when you take your benefits. That is why strategically planning to maximize your social security is a smart investment to make and one that we can help you with. This is a hypothetical example and is not representative of any specific investment. Your results may vary.