There are plenty of choices to make, both emotionally as well as monetarily, while you plan for retirement. One of the biggest choices you will need to make is when to begin collecting your Social Security retirement benefits. A few issues you may need to take into consideration include:
Should you begin Social Security at 62 or 66, or even later?
What is the best age should your spouse start collecting Social Security?
Will you receive your spouse's benefits if he/she dies before you?
Can you collect on your spouse's earnings record if he/she earned more than you?
How can you collect on your ex-spouse's income?
In case 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:
Optimize Your Social Security Income:
Your retirement benefit will be based upon your highest 35 years of income which means that it is critical to get as many "high earning" years in as you possibly can. As a result, being employed even one year longer at a significant compensating position can make an impact in your retirement income.
Postpone Getting Your Social Security Income:
Social Security penalizes you for each month you receive your Social Security before you reach your full retirement age; the maximum penalty is 25% for people who start taking benefits at age 62. While starting your benefits early might be attractive, those people who are patient can improve their Social Security retirement benefits by approximately 30% (including COLA increases) by waiting until full retirement age.
Work Part-Time While in Retirement:
While you are limited in how much money you can bring in if you are under full retirement age and receiving Social Security, as soon as you attain full retirement age you may make as much income as you wish without your retirement benefits being lowered. Yet another idea may be to get a part-time job when you finally retire and postpone applying for Social Security benefits.
Collect Based upon Your Spouse's Benefits:
Whenever you are married, you are able to receive Social Security retirement benefits based on your own earnings, or you can collect half of your spouse's benefit, whichever is larger. If you and your spouse are not the same age, you will need to do some planning to make certain you get the maximum benefits, however this is definitely a technique to consider if one spouse earns a lot more than the other, or perhaps if one spouse has been out of the work force for several years.
Draw on Your Ex Spouse's Benefits:
The spousal benefit goes for ex-spouses also. If you were married to your ex-spouse for not less than 10 years, and you also are not presently married to another individual, you'll be able to collect up to 50% of your ex spouse's benefits. You do not have to speak with your ex-spouse to apply for your benefits; in reality they may never learn unless you advise them, and it won't affect their own benefits in the slightest.
These are just some stategies to help you get the maximum Social Security retirement benefits. Applying for your Social Security retirement income can be an extremely difficult decision and will affect the rest of your retirement, so remember to speak with a professional before you make any decisions on your own.
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