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Health & Fitness

Tips to Boost Your Social Security Benefits

Joe Lucey details tips for ensuring that retirees get the most from their social security benefits.

Think about those millions of checks the government prints out for social security. Well, they could be much bigger if you know some tricks of the trade.  If you are like many of the families that come to Secured Retirement Advisors for help, you probably think you will just automatically start collecting social security without much choice in the matter. The truth is, you could be missing out on thousands of dollars.  I was on FOX news this past week explaining some important strategies that you should consider before making your decision on when or how you will elect your benefits. 

Informed decisions about social security make a huge difference.

Social Security is the largest source of income for citizens age 65 and older. Yet this huge entitlement has many facets, and many retirees are uninformed.  Informed decisions about how and when to claim Social Security benefits can mean thousands of extra dollars a year, and tens of thousands of dollars over a lifetime.

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Why are so many people uninformed about social security?

  • Social Security representatives are trained to help you get the biggest monthly benefit on the day you walk into the Social Security Administration office or on the day you file for your benefits online.  However, the Social Security Administration employees don’t take into account your whole family or the best strategy for your whole lifetime when setting up your Social Security elections and the difference could be substantial.
  • Most financial advisors do not have the training or tools to help you make the decision. 

 

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Tips to Maximize One’s Social Security Benefits:

  1. Know what’s at stake: An uninformed decision could cost you plenty.  Many people are shocked by how much money they could gain in social security benefits after using Social Security calculator and meeting with a trained advisor.  Families have one opportunity to claim their social security benefits.  There are no do-overs.  One unwise choice could mean missing out on thousands of dollars. 
  2. It’s Not Just About You: Consider your spouse when making your social security benefit election.  Many retirees make their election as an individual, but this is a huge mistake.  By making the decision as a family, and you will gain thousands of dollars in benefits. 
  3. Consider Switch Strategies®: Most people don’t know about switch strategies – the ability to file for a limited benefit for a period of time and then later switch to a larger benefit. Here are some examples:
  • Collect on your Spouse -Spouses are entitled to a Social Security benefit of up to 50 percent of the higher earning spouse’s check if that amount is higher than the payout based on his or her own working record.
  • Collect on your Ex-Spouse - A former spouse may be eligible for Social Security payments if the marriage lasted at least 10 years. The divorced spouse must be age 62 or older and unmarried. An ex-spouse claiming has no impact on the worker’s payout.
  • Collect on your Deceased Spouse - Widows and widowers are entitled to the higher earner’s full retirement benefit. A worker can increase the monthly survivor’s benefit that his or her surviving spouse will receive by waiting to sign up for Social Security until age 70.
  • Wait to Collect your Own Benefit - The majority of retirees still claim benefits as early as they can, at age 62. But just because they can doesn't mean that they should, particularly if they plan to continue working, as so many boomers now expect to do.  Here’s why: there’s an 80-percent gain in benefits by waiting to collect until age 70 instead of collecting early at age 62. 

 

As you can see, there are many factors to consider and careful elections ensure you receive the maximum benefit from your social security. If you would like help making the right social security plan, calculating your savings, or finding an investment calculator feel free to visit us at www.securedretirements.com and help yourself to any of our free, down-loadable educational materials. If you would like a complementary “3 Step Review” of your own retirement plan, call Secured Retirement Advisors at 952-460-3260. 

 

 

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