How to maximize your social security benefits the motley. Social security s rules are also complicated, particularly for married people, and the ideal strategy isnt always obvious. If you or your spouse reached age 62 by the end of 2015, you qualify for a social security claiming strategy called restricted application. The most effective social security claiming strategy for you depends on how long you will live. The 6670 social security strategy for married couples. For many retirees, social security is their biggest source of guaranteed income. For this reason, were including it on the list as a bonus tool and one well worth investigating. Secret strategies to maximize benefits social security. Once you reach age 70, increases stop, so there is no benefit to waiting past age. Claim your free social security guide book retiree. Jan 01, 20 social security benefits grow an average of about 7% a year between 62 and 70, not including costofliving adjustments. This helps you find the optimal claiming strategy for your situation.
How to optimize retirement benefits, 3rd edition, reichenstein and meyer available on septemberoctober 2016, investment wealth monitor why the conventional wisdom is never the optimal withdrawal strategy, meyer and reichenstein. Reduction or nonpayment of social security benefits. Option 2 is known as the restricted application for spousal benefits. Can i earn more by taking social security early and. You apply for social security benefits, but restrict your claim to your spousal benefit. According to a recent survey conducted by social security timing, a financial planning firm that helps people determine optimal social security claiming strategies, 77 percent of survey. Social security filing strategies for married couples. Ssa handbook table of contents social security administration. Whether wife should really start at 62, 65, or anywhere in between, doesn. Social security filing strategies under the new rules. Social security is part of a larger conversation about when you plan to retire, and what you expect or want your retirement to be like. Sep 16, 2019 the most effective social security claiming strategy for you depends on how long you will live. For many people, this may be an effective strategy for increasing your. Strategies to boost your social security kiplinger.
Jun 20, 2018 the difference is only in when wife should start. The following free calculators will help you decide. Social security strategies for married couples oblivious. Social security benefits are typically synonymous with retirement income. Since the survivor gets the higher of the two social security benefits, a good strategy is to plan for at least one benefit to be as high as possible. Jul 23, 2015 created as a partnership between entrepreneur and software expert bill meyer, and the highly reputable financial planning researcher bill reichenstein who has published extensively on social security strategies in the journal of financial planning, ss analyzer is built to gather detailed information about the clients social security. We understand the nuances of social security, and we can help you determine your best strategy for collecting benefits in line with your retirement goals. New social security strategies for couples marketwatch.
The primary such cost is the distortion in private saving. Secret strategies below are three examples of the littleknown or poorly understood strategies we employ to help you maximize your social security benefits. The younger spouse who doesnt need to have turned 62 at the end of 2015 claims social security benefits based on his or her own earnings record. If your optimal social security lifetime benefit maximization strategy requires you to file for retirement benefits and immediately suspend them, make sure you do so by april 29. Even if someone is familiar with all of the provisions that might affect their choice, it can be extremely difficult to determine the optimal strategy. What tool have you found most useful to use for helping clients make social security decisions. Social security for dummies is the one guide you need to navigate the oftencomplex world of social security benefits. New free book can help you collect larger social security checks. Maximizing social security benefits special report. Did you know more than 70% of americans leave this money on the table, so make sure it doesnt happen to you.
A good social security calculator can help you get more benefits over your retirement years by providing you with customized claiming strategies that you might not have been aware of otherwise. Selecting the right strategy for when to claim social security will pay off for years to come. Here are the things you need to know to get the most money out of your benefits. Consider using this strategy if one spouses benefit at full retirement age is higher, but not so much higher that the lowerearning spouse would be better off with spousal benefits. Jul 29, 2016 joes optimal strategy for claiming social security retirement benefits, actually, is to wait until 70. Then, hed collect a 76 percent higher, inflationadjusted retirement benefit. Ive looked at moneyguidepro for this, and it does a pretty good job but would appreciate hearing if you have better tools that i should consider especially if they are free or less. Discover your social security strategies social security. When appropriate, these and other strategies may increase your lifetime social security benefits substantially by tensofthousands of dollars in some instances. The optimal level of social security benefits depends on balancing the protection that these benefits offer to those who have not provided adequately for their own old age against the welfare costs of distorting economic behavior. In his new free book, the little black book of social security secrets, cpaattorney james lange reveals proven strategies that can help you maximize your social security benefits for life. Nov 24, 2016 the restricted application or the claim now, claim more later strategy is another way married couples can get more from social security.
His optimal social security strategy, the one that pays the most in cumulative lifetime benefits, is for him to begin benefits at age 70, but bill, who is 62, is ready to retire sooner than that. In general, the primary factors that determine when married people should take social security are the same as those for determining when unmarried people should take. Social security search menu languages sign in up table of contents note. Ross was a longtime social security employee who played key staff roles at ssa, especially in the area of legislation.
The fileandsuspend social security strategy allowed workers to file for their own retirement benefits, then immediately suspend those payments in order to let them go back to growing. However, in case of a conflict between the contents of the handbook and the act, regulations, and rulings, the latter take precedence. A social security strategy for the wealthy marketwatch. To get all the social security you deserve, read a book that shouldnt need to exist. Apr 10, 2017 another smart use of social security benefits is as protection against the potential cost of longterm care. Making optimal social security claiming decisions by daniel.
As such, your filing decision is too important for guesswork. There are two main switch strategies for married couples when planning for your social security benefits. Solving the retirement withdrawal equation wealth management. A related file and suspend strategy known as restricted application remains possible for certain people. The first book is mike pipers social security made simple.
The social security administration makes one such calculator available on its website, but it doesnt analyze a variety of options or show you what claiming choices will result in you having more money. The easiest way to figure out what the best social security claiming strategy will be for you is to answer the following three questions. Work with the experts who can help you personalize a strategy thats right for you. Our custom software reflects all current social security laws and claiming options. In the case of social security, you can take your benefit as early as age 62, but it makes sense to wait if you can. Just skip all the examples and start with the section where the couples are split into 4 groups. For a person of retirement age with average savings, this choice may be more important than any other aspect of financial planning when it comes to the standard of living in retirement yet, much of the information available is overly simplistic. That means youre earning a bigger return by delaying social security. The papers of mary ross were donated to the ssa history archives following her death in march 2001. Strategies for optimal social security payouts layman. Social security claiming strategy calculators compared. Optimal social security recommended a social security strategy for me and my spouse that should give us the greatest benefit for our retirement based on our projected life expectancy.
The following is an adapted excerpt from my book social security made simple. Also, if she were to start collecting social security prior to her full retirement age of 66 she would be subject to the earnings test, as shown on the ssa earnings test booklet. Understanding the potential power of social security. Customized reports are prepared for married couples and single persons. Schedule a visit to a social security office to file and suspend the restricted. Social security calculator tools to analyze the timing of when its best to start benefits. Get more social security benefits with social security solutions. What just happened to social security spousal benefits. The yardstick it uses to determine an optimal strategy is to maximize the expected payout from social security to you over your lifetime and the expected lifetime payout to your surviving spouse. When to start claiming social security to maximize your potential benefit can be a complicated question, especially for couples.
Mar 29, 2016 take social security late, recommends a chorus of personal finance experts, notably including economist laurence kotlikoff. May 21, 2014 if you are not going to start drawing social security at age 62, then this book might be ok to help you understand your optimal claiming strategy. Mike piper of oblivious investor has created a free, opensource calculator called open. If you have a major health problem, it can make sense to. Do you know the best social security claiming strategies. This is the only one on the list that is not free, but it offers a virtual onestopshop for calculating your optimal social security benefits. To help you get around these complexities and determine your best social security strategy, we can provide you with a customized analysis, tailored to your specific circumstances. Social security is a vital source of income for millions of american retirees, as it makes up more than half of all income for the majority of retired households. When appropriate, these and other strategies may increase your lifetime social security benefits substantially by tensofthousands of dollars in. Below are three examples of the littleknown or poorly understood strategies we employ to help you maximize your social security benefits.
But even thinking about social security just as an investment would lead a good investor to wait till 70 to take her retirement benefit assuming waiting till 70 was part of her optimal social security strategy, i. Dec 21, 2015 the recent changes in social security claiming rules dont affect widows and widowers, so the budget law wont require a change in your strategy. New free book can help you collect larger social security. How married couples can max out their social security. Americans lose trillions claiming social security benefits. Nssp works in collaboration with other professionals such as financial advisors, cpas, and attorneys to help clients navigate the complexities of social security and maximize benefits.
Your social security spousal benefitwith the ability to switch to your retirement benefit at a later time. Oct 04, 2011 a great new tool for deciding when to take social security. If you have a major health problem, it can make sense to claim benefits as soon as possible unless. Visit the ssa website to request your social security statement, calculate your fra, or estimate your future retirement, disability, or survivor benefits. If you file at 62 the earliest age possible, your monthly benefit will be permanently reduced by 2530 percent based on your full retirement age. It recommended a strategy i had never heard of before, the restricted application strategy for people born before 1954. Ash ahluwalia, mba, cfp, is the founder and president of national social security partners, llc, nssp, the nations leading social security planning firm. If you are not going to start drawing social security at age 62, then this book might be ok to help you understand your optimal claiming strategy. The ideal time is probably in your early sixties, but if youre curious, you could muddle through one or both of them before then. Making optimal decisions about when to claim social security benefits is of vital importance. In recognizing the void that has existed for personalized and pragmatic advice related to social security at retirement, bill founded social security solutions, inc.
His social security columns have prompted so many of you to. Social security filing tactics you need to consider cbs news. But there are still plenty of ways to boost the check thats likely to be a main source of income. All the information provided is based on current social security rules, benefits calculations, and payout promises of existing social security policy. Sep 02, 2016 social security will pay you a premium if you wait until 70. Social security retirement benefits and related planning topics explained in 100 pages or less. Four years ago, a 384page book on social security claiming. Your 2019 guide to social security benefits the motley fool. The government is keeping money that belongs to you as a father and business owner dealing with medicare and social security services for my disabled son and my clients, helping others has been in my dna for over 30 years. The two best books on social security white coat investor.
Feb 16, 2015 to determine whats optimal, you should assess your income needs in retirement and adjust accordingly, he says. Married folks get two additional benefits singles do not get from social security spousal benefits and survivor benefits. Approach social security armed with knowledge about how the system works, and youll be more likely to maximize your benefits. Congress recently eliminated 2 lucrative social security claiming strategies for most americans. For example, the difference between claiming your benefit at age 62 and 66 the full retirement age for those born before 1960 is about 25%. If you want to see for yourself, check out the social security handbook, or the program operating manual. Take social security late, recommends a chorus of personal finance experts, notably including economist laurence kotlikoff. A good starting point is to set up your my social security page on. Seriously though, you should read at least one of these two books at some point in your life. Last call to pursue social securitys file and suspend. Making the most of social security requires some strategy to take advantage of the basic benefit rules, however.
How to optimize retirement benefits, 3rd edition perfect paperback march 1, 2017. It isnt unusual for someone with a chronic or debilitating illness to pay upward of. To get all the social security you deserve, read a book. Get this that social security is very generous to married couples. William meyer is the founder of social security solutions, inc. We try to update the handbook content on an ongoing basis as changes occur.
But not everyone can wait most take it early so theres some tradeoffs. A great new tool for deciding when to take social security. Her husband, bob, is collecting social security retirement benefits. Thats a big deal, as social security income is critical to most. Again, because the difference is quite small, i would say both calculators point to the same direction. Open social security shows having wife start at 65 as opposed to 62 and 1 month reduces the lifetime benefits by 0. Get more social security benefits with social security. Last fall, congress rewrote the rules at social security to get rid of socalled loopholes that for many years allowed some married couples to improve their retirement benefits. This updated edition offers clear guidance on when to claim benefits, how much you can expect to receive, where to find social security calculators, and so much more. Strategies for optimal social security payouts retire. Last call to pursue social securitys file and suspend strategy.
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