Learn About Social Security

Social Security:  Don’t make this expensive mistake!

Don’t make this common mistake!!!

Once you are 62, you are eligible for “Social Security benefits”.  Most people automatically sign up.  This can be a big mistake!  

Instead, learn how waiting just a handful of years may entitle you to a much higher monthly benefit.

Unfortunately, most people do not understand that delaying payments as long as possible can have a large positive impact on your retirement. 

Did you know, for each year after “full retirement” up until age 70 a retiree delays accepting social security, their future payments increase by eight percent?

Delaying SS benefits can be a vital tool for those us trying to play catch-up in the savings game.

The earliest you can start receiving retirement benefits is at age 62. However, your payments will be reduced if you start taking benefits then.  If you can wait until 70, you can do far better!  Doing this increases your payments by 8% for each year that you wait, up to age 70. 

So if you can hold off, by all means, do!  Getting 8% per year is a rare opportunity that in most instances, should not be passed up.

If you’re married, you both can collect social security benefits.

If both you and your spouse qualify for benefits on your own, you will both receive what you have earned.

Also, the lower-paid spouse will receive his or her own benefit or half of the spouse’s benefit, whichever is more.

If you’re divorced, you can claim off your own record, or your ex-spouse’s record if higher, based on certain criteria.

In order to claim spousal benefits, you must have been married for at least 10 years and not be entitled to a higher benefit based on your own record. In addition, you must be at least 62 and unmarried. You’ll lose the spousal benefit if you remarry, although you can reapply if you get divorced again or your second spouse dies.

If you’re widowed, you can normally get benefits on your deceased spouse’s record.  

The benefits may start as early as age 60 for you and you may receive a higher benefit.

Once you begin taking social security, the payments continue for the rest of your life.

You can get an estimate of what to expect from Social Security from the statement the SSA sends annually to everyone over age 25. Or go to http://www.socialsecurity.gov/ and use the online calculator to estimate benefits yourself.