For many Americans, Social Security is a key source of retirement income. But when and how you claim your benefits can have a major impact on your financial future. With many filing strategies and many variables, handling Social Security alone can be stressful. That’s why working with a retirement planning firm helps you make smart, confident decisions.
Social Security Is More Than Just a Check
Social Security gives you a guaranteed income for life, with yearly cost-of-living increases. But the amount you receive depends on when and how you claim your benefits. The difference can add up to thousands of dollars over time.
Here are a few important factors that affect your benefits:
• Your claiming age: Taking benefits at 62 lowers your monthly payment. Waiting past your full retirement age boosts your benefits through delayed retirement credits, up to age 70.
• Spousal and survivor benefits: If you are married, divorced, or widowed, you may be able to increase household income by timing your claims together.
• Work and income history: Social Security looks at your 35 highest-earning years, adjusted for inflation. Understanding how your recent income affects this is key.
• Taxes and longevity: Knowing how your benefits are taxed and how long you may need them helps shape your retirement income plan.
