One of our Financial Advisors answers our most commonly asked questions about Social Security!
With the new bump in Social Security benefits this year, it's a good time to quickly recap some popular questions we get about them.
"When should I take my Social Security benefit?"
- The earliest you can begin taking the benefit is at age 62. They consider “full retirement age” around age 67. You can wait and elect to turn on the benefit at any age after 62. 70 is the latest age you can take it. Generally speaking, the longer you wait, the larger your monthly benefit will be. Your benefit increases by a maximum of 8% each year you wait between your full retirement age and age 70.
"Will Social Security go away? Should I just it while I can?"
- A lot of folks are worried about Social Security going away or just electing it early in case they pass away. There are a few considerations to make concerning timing. Filing early means you get a lower benefit than you would if you waited. Even if you live to be 100 years old, your benefit will always be that lower amount. Also, if you file early and pass away, your spouse may receive a lower survivor benefit. It’s important to think of Social Security in terms of "what kind of income you need" instead of "when you should file." We recommend working with a financial professional to plan for the best time to turn your benefit on.
"Can I file for Social Security benefits and continue to work?"
- The short answer is “Yes.” But, there are income limits prior to your full retirement age that may reduce your benefit amount. After full retirement age, your benefit will not be reduced if you continue to work.
"Does my spouse have to sign up for the same options or at the same time as me?"
- No. Your financial professional can work with you to discuss the timing options that make the most sense for your financial situation.
"Is Social Security taxable?"
Yes, your benefit may be taxable, but it depends on your combined income. It’s a good idea to discuss this with your tax professional before you enroll.
It's beneficial to have a team of experienced professionals on your side. If you have questions about your Social Security benefits, schedule a call with us!