Only 35% of Social Security recipients file at Full Retirement Age (FRA), yet most of them should... This short video will help you make the decision about when to file for this important part of your retirement income. Questions to Ask A Financial Planner to Determine if They Know How Social Security Really Works Please explain what the best age is for me to file for Social Security and Why? Please explain provisional income to me. What is the best age for my spouse to file for Social Security if her/his retirement benefit is less than half of mine? What are Social Security Credits and how are they calculated? What is a Social Security Breakeven Analysis and is this a good way to determine when to file? Do I need to file for for Social Security for my spouse to receive spousal benefits. What is the Survivor Benefit and how is it determined? What is the payout percentage difference between filing at full retirement age and minimum filing age? Note: If you financial planner does not know the answer to these basic questions, I recommend that you move on to someone who does. RECOMMENDED VIDEOS Average Retirement Savings at 60 - Average Retirement Savings at 50 - 3 Easy Ways to Boost Your Retirement Savings - Average Retirement Savings at 40 - How to Report Property Gains and Losses - Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider....(read more)
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When Filing for Social Security at Full Retirement Age (or Later!) Is Your Best Choice Social Security is an important program that provides financial support to retired individuals, disabled citizens, and surviving family members. While the decision to file for Social Security benefits can depend on various factors, it is crucial to understand the benefits of waiting until your full retirement age or even longer before filing. By delaying your claim, you can significantly increase your monthly benefit amount and secure a more financially stable future. Firstly, let's clarify what full retirement age (FRA) means. FRA refers to the age at which you are eligible to receive full Social Security benefits based on your date of birth. For individuals born between 1943 and 1954, the FRA is 66 years old. However, if you were born in or after 1960, your FRA is 67. Many individuals choose to file for Social Security early, starting at age 62, as soon as they become eligible. While this option may seem tempting, it comes with substantial drawbacks. If you file for benefits before reaching your FRA, you will face a permanent reduction in the monthly amount you receive. For instance, let's assume that your FRA is 66, and your expected monthly benefit at that age is $1,000. If you file for Social Security at age 62, your monthly benefit will be reduced by 25% to $750. This reduction lasts for the rest of your life, unless you decide to withdraw your application and repay the benefits you have received. On the other hand, if you choose to delay filing for Social Security, you will experience a significant increase in your monthly benefit. For each year you delay after your FRA, your benefit amount grows by a certain percentage. This additional amount, known as the delayed retirement credit, is added to your benefit calculation. For individuals born between 1943 and 1954, the delayed retirement credit is 8% per year. Therefore, if you wait until age 70, you will receive a 32% increase in your monthly benefit. Considering our previous example, this would boost your monthly benefit from $1,000 to $1,320. Delaying your Social Security claim can be particularly beneficial if you are in good health and expect to live a longer life. By receiving a higher monthly benefit, you can better cover your expenses during retirement and potentially avoid financial strains in old age. Additionally, the higher benefit amount may provide more protection against inflation and rising living costs, allowing you to maintain a comfortable standard of living. Moreover, if you continue working and earning income past your FRA while receiving Social Security benefits, an earnings test may limit how much you can earn before facing a reduction in benefits. However, this reduction is temporary and will be compensated for in the future, generating higher monthly payments later on. Of course, there are also situations where filing for Social Security benefits early may make sense, such as if you have pressing financial needs or a shorter life expectancy due to health conditions. In such cases, it's important to weigh the pros and cons and consider all the factors before making a decision. In conclusion, for most individuals, waiting until full retirement age or later to file for Social Security benefits can be a wise and financially beneficial choice. By delaying your claim, you can secure a higher monthly benefit, which will enhance your financial stability and provide a more comfortable retirement. Take the time to carefully consider your situation and consult with a financial advisor to determine the best strategy for maximizing your Social Security benefits. https://inflationprotection.org/why-opting-for-social-security-at-full-retirement-age-or-beyond-is-your-ideal-decision/?feed_id=115263&_unique_id=64a920d4bbe34 #Inflation #Retirement #GoldIRA #Wealth #Investing #filingforsocialsecurity #FullRetirementAge #fullretirementageforsocialsecurity #socialsecurity #socialsecurityat62 #socialsecurityat62vs67 #socialsecurityat67vs70 #socialsecuritybenefits #socialsecurityfullretirementage #socialsecurityincome #socialsecurityretirement #socialsecurityretirementbenefits #soicalsecurityat67 #soicalsecurityat70 #taxesonsocialsecurity #workingandsocialsecurity #SpousalIRA #filingforsocialsecurity #FullRetirementAge #fullretirementageforsocialsecurity #socialsecurity #socialsecurityat62 #socialsecurityat62vs67 #socialsecurityat67vs70 #socialsecuritybenefits #socialsecurityfullretirementage #socialsecurityincome #socialsecurityretirement #socialsecurityretirementbenefits #soicalsecurityat67 #soicalsecurityat70 #taxesonsocialsecurity #workingandsocialsecurity
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