Understanding Social Security
Currently millions of baby boomers are getting ready to start collecting Social Security benefits. Not everyone understands how Social Security benefits are calculated or what benefits are offered. It is important that you understand the ins and outs of the system so you don’t miss out on the benefits you earned during your working years.
Eligible recipients need to weigh the pros and cons of when to start benefits. Currently you can begin receiving reduced benefits at age 62, receive full benefits at 66 (for those born between 1943 and 1954) or choose to wait until age 70 and receive increased benefits. The decision as to when to start benefits is unique to each individual.
Another factor will be deciding whose benefits you will draw from. Many will draw upon their own benefits; however spouses who have little or no earnings history can receive a spousal benefit equal to half the working spouse’s amount. Additionally you can receive spousal benefits based on your ex-spouses work record if you were married at least 10 years and remain single. If you are widowed you also have the option of taking your spouse's benefits should they be higher than your own.
To begin the process of deciding the best option for you, it is important to review your entire financial picture. Since Social Security benefits may be taxed, it is important to have a comprehensive plan to minimize your tax liabilities.
Here at World Trend and Terry Lockridge & Dunn we specialize in providing one on one consultation to help prepare you for your retirement. We help build a road map so you will know what options are best for you. We believe your retirement should not be spent worrying about tomorrow but enjoying today.
<< back
|
|
|