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Social Security
Retirement Benefits
A WISE STRATEGY FOR CLAIMING SOCIAL SECURITY BENEFITS MAY RESULT IN ADDITIONAL RETIREMENT INCOME.
About Social Security
Social Security retirement benefits help provide lifetime, inflation-adjusted income. Combined with your retirement savings, plus any pension benefits you may receive, Social Security may serve as an important component of your overall plan for retirement income
Who Can Claim Benefits?
Eligibility for Social Security begins "early", at age 62. However, claiming early will reduce your monthly check - permanently. There are many issues to consider when deciding to claim benefits
Two Key Terms: PIA and FRA
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Your Primary Insurance Amount, or PIA, is the amount of monthly income you will receive at your normal retirement age, also known as your Full Retirement Age (FRA). Depending upon when you were born, your FRA will range from age 65 to age 67. People born between 1943 and 1954 have an FRA of 66. Click here to see your FRA.
Your PIA, which is based upon your lifetime earnings, may be reduced or increased, depending upon when you decide to claim retirement benefits. You may claim benefits before reaching your FRA, as early as age 62, and you may delay claiming until after your FRA, as late as age 70.
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Claiming after you've reached your FRA offers benefits. Your monthly check will be increased by 8% for each year that you delay, up to age 70. For example, if your FRA is 66, and you delay four years until you're 70, your monthly check will be 32% higher than at age 66, and 75% higher than at age 62. Over time, one might receive significantly more dollars depending upon when benefits are claimed
Help is Important
I BELIEVE MOST PEOPLE BENEFIT WHEN THAT HAVE THE ASSISTANCE OF A FINANCIAL PROFESSIONAL, ONE WHO CAN HELP INCORPORATE YOUR SOCIAL SECURITY CLAIMING OPTIONS INTO AN OVERALL RETIREMENT INCOME PLAN
How Long Will You Live in Retirement?
Have you ever thought about how many years you might spend in retirement? While we can't know for certain, we should think about how life expectancy has increased in the decades since Social Security began.
In 1935, life expectancy in the U.S. was 61.7 years.
By 2016 it had increased to 78.6 years.
Think About This
Consider a married couple age 65. There's a 72% chance that one spouse will live to age 85. And a 45% chance that one spouse will live to age 90. **
As of December 2017 ***, 5.7 million Social Security beneficiaries were at least age 85. Some much older. But collecting Social security benefits well into old age is nothing new
SOMETHING TO ALWAYS KEEP IN MIND:
NO RETIREE STOPS NEEDING INCOME. WHETHER YOOU ARE 66, 78, or 93, BILLS MUST BE PAID.
The First Social Security Recipient
THE VERY FIRST PERSON TO COLLECT SOCIAL SECURITY RETIREMENT BENEFITS WAS IDA MAY FULLER
IDA MAY DEMONSTRATAED THE IMPORTANCE OF LIFETIME GUARANTEED INCOME
A resident of Vermont, Ida May retired in 1939 after paying into Social Security for just three years. Ida May received her first Social Security payment on January 31, 1940. She then went on to collect from Social Security for thirty-five years.
Ida May passed away in 1975... at the age of one hundred.
DELAYING CAN BOOST YOUR TOTAL INCOME
HOW DELAYING MAY INCREASES YOUR TOTAL INCOME
Let's assume that your age 66 projected monthly retirement benefit is $2,482. Claiming benefits at age 62 reduces the monthly check from $2,482, to $1,800.
That's a reduction of $8,184 per year. Again, that reduction is not for a year, or a few years. It's PERMANENT
Losing Income is Possible
Over the 38 years from age 62 until age 100, this means giving up one-hundred-seventy-six-thousand-nine-hundred-sixty-four-dollars.
Now, you may feel that living to age 100 is unrealistic. If so, then back that up by 20 years. If you were to live to age 80, the loss in retirement income is still $13,284.
Don't Think That Claiming Social Security Benefits Early Is Your Best Decision
It may have been the right choice for your parents, but it could be the wrong choice for you.
In fact, if you feel that you are likely to live to age 80, or, 85, you should think carefully about delaying benefits until even after your full retirement age. This is because for every year that you wait beyond full retirement age, your monthly check will be increased by an additional 8%.
Waiting until age 70 means receiving 32% more retirement income versus age 66, and 75% more income compared to age 62. That's $1,800 per month at age 62, versus $3,168 at age 70
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Help is Really Important
I BELIEVE MOST PEOPLE BENEFIT WHEN THAT HAVE THE ASSISTANCE OF A FINANCIAL PROFESSIONAL, ONE WHO CAN HELP INCORPORATE YOUR SOCIAL SECURITY CLAIMING OPTIONS INTO AN OVERALL RETIREMENT INCOME PLAN
When Faced with A Complex Decision, Expert Guidance Can Mean A Lot
Most people want to receive the highest possible Social Security benefits. To attain that objectively however, many considerations must be made. Social Security decisions are generally not made in isolation. Other issues are important in crafting a plan to maximize your benefits. These include other sources of income you may have, your budget, personal savings, investments, your health, taxes, and more.
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MY role is to help you manage a variety of considerations in order to find the claiming strategy that is best for you.
Contact Tyrone
Let's connect and discuss how I can help strengthen your retirement security.
(303) 991-0739 I (800) 344-4105 ext. 39