Once you start nearing retirement age, naturally, you will begin to start thinking about Social Security. For many people, Social Security represents a big chunk of their income in retirement, which is why it’s important to be properly educated about your options, and the best practices when it comes to drawing Social Security. We’ve prepared an article with some important things you need to know to help maximize your Social Security benefits.
Don’t Enroll Too Early!
Making the right decision as to when you enroll in Social Security is key, because you only get one chance to do this. Once you trigger your Social Security benefit, you will be locked into the amount of money you receive indefinitely. The longer you wait, the more benefit you will receive, so make sure you trigger your benefit at the right age, because you’ll be locked in for the rest of your life.
How Does Marriage Effect My Social Security Benefit?
If you are married, you will receive up to 50% of your spouse’s earnings from working, or their worker-retirement benefit, whichever is higher. This is often called the “marriage penalty”, as married couples who are both on Social Security will receive 25% less money each month than a couple on Social Security that isn’t married.
When is the Best Time to Enroll in Social Security?
Unfortunately, there isn’t really a clearcut answer to this question. Everyone’s circumstances are different, so the ideal age to enroll in Social Security will be different for everyone. There are many factors to consider, like whether or not you’re married or divorced, widowed, along with several other factors. Generally speaking, 66 seems to be the age in which most people realize the most benefit from enrolling in Social Security.
Just because everyone’s situation is different, doesn’t mean it’s impossible to figure out what the optimal age for you to enroll is! The best way to understand the role that Social Security will play in your retirement is to work with a financial planner. If you want to learn more, book a complimentary consultation to review your plans to draw Social Security with one of the experts at Safe Harbor Retirement today!