| Social Security Old Age Earnings: Guidelines To Help You Get The Most Out Of Your Social Security Income |
| Articles - Retirement |
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Among the many financial decisions you need to make as you get ready to retire is when you should start collecting your Social Security retirement income. There are lots of concerns involved with this specific decision, such as:
Among the many financial decisions you have to make when you prepare to retire is without question when you should start collecting your Social Security retirement benefits. There are many questions included in this particular choice, which include: When should you begin collecting Social Security - 62, 66 or 70? When should your wife or husband apply for their benefits? What happens to your spouse's benefits (and yours) when he/she dies? When is it better to collect based on your spouse's earnings record? Are you able to collect on an ex-spouse's benefits? If your mind wasn't spinning before, it is now! Below are some tips and ideas to help you get the most out of your Social Security retirement benefits: Boost Your Social Security Earnings: Your retirement benefit is dependant on your highest 35 years of salary thus you'll want to get as many "high earning" years in as possible. Because of this, staying with your job just one year more in a good compensating position could make a big difference with your retirement income. Hold off Taking Your Social Security Retirement Income: Social Security penalizes you for each month you collect your Social Security before you reach your full retirement age, with the highest possible penalty being 25% if you begin taking benefits at age 62. Even though collecting your benefits early could be tempting, those who are patient can increase their benefits by up to 30% (including COLA adjustments) by waiting until full retirement age. Work Part-Time During Retirement: Although you are limited in how much money you are able to be paid when you are below full retirement age and receiving Social Security, once you achieve full retirement age you are allowed to earn as much income as you desire without your retirement benefits being reduced. Yet another idea could be to take a part-time job after you retire and delay taking Social Security benefits. Apply for Benefits Based on Your Spouse's Earnings: If you are married, you can withdraw Social Security retirement benefits based on your income, or you can collect half of your spouse's benefit, whichever is greater. If you and your spouse aren't the same age, you may need to do some planning to guarantee you get the maximum benefits, however this may possibly be a strategy to bear in mind if one spouse makes significantly more than the other, or if one spouse has been away from the work force for several years. Take advantage of Your Ex Spouse's Benefits: The spousal benefit pertains to ex-spouses too. If you were married to your ex-spouse for not less than 10 years, and you also are not currently married to somebody else, you could collect as much as 50% of your ex spouse's benefits. It's not necessary to speak with your ex-spouse to claim your benefits; in reality they may never find out unless you tell them, plus it won't affect their own benefits at all. These are just some guidelines to help you to increase your Social Security retirement benefits. Receiving your Social Security retirement benefits can be a very complex decision and will influence the rest of your retirement, so make sure you speak with a professional before you make any decisions on your own. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn how to maximize your Social Security retirement benefits at www.socialsecurityretirementincome.com |