Comprehensive Financial Solutions, Inc.

440-343-4223

Retirement Read Time: 3 min

Three Key Questions to Answer Before Taking Social Security

Social Security is a critical component of the retirement financial strategy for many Americans, so before you begin taking it, you should consider three important questions. The answers may affect whether you make the most of this retirement income source.

  1. When to Start? You have the choice of 1) starting benefits at age 62, 2) claiming them at your full retirement age, or 3) delaying payments until age 70. If you claim early, you can expect to receive a monthly benefit that will be lower than what you would have earned at full retirement. If you wait until age 70, you can expect to receive an even higher monthly benefit than you would have received if you had begun taking payments at your full retirement age. The decision of when to begin taking benefits may hinge on whether you need the income now or can wait, and whether you think your lifespan will be shorter or longer than the average American.
  2. Should I Continue to Work? Work provides income, personal satisfaction, and may increase your Social Security benefits. However, if you begin taking benefits prior to your full retirement age and continue to work, your benefits will be reduced by $1 for every $2 in earnings above the prevailing annual limit ($21,240 in 2023). If you work during the year in which you attain full retirement age, your benefits will be reduced by $1 for every $3 in earnings over a different annual limit ($56,520 in 2023) until the month you reach full retirement age. After you attain your full retirement age, earned income no longer reduces benefit payments.1
  3. How Can I Maximize My Benefit? The easiest way to maximize your monthly Social Security benefit is to simply wait until you turn age 70 before receiving payments.

1. SSA.gov, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG  Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Raising Healthy Children

Raising Healthy Children

Healthy habits are one of the greatest gifts to give your child.

Investments

Investments

You’ve made investments your whole life. Work with us to help make the most of them.

4 Steps to Protecting a Child with Disabilities

4 Steps to Protecting a Child with Disabilities

Planning for a child with special needs can be complicated, confusing, and even overwhelming.

 

Have A Question About This Topic?







Thank you! Oops!

Insuring Your Business Against Cyber Liability

90% of small businesses in the U.S. don't protect their data from cyber attacks. Is your business at risk?

Problems with Probate

Probate can be a completely public process, or it can be managed to include as little information as possible.

Do Your Kids Know The Value of a Silver Spoon?

You taught them how to read and how to ride a bike, but have you taught your children how to manage money?

View all articles

Federal Income Tax

Use this calculator to estimate your income tax liability along with average and marginal tax rates.

What's My Potential Estate Tax?

This calculator helps estimate your federal estate tax liability.

Historical Inflation

This calculator shows how inflation over the years has impacted purchasing power.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

Should You Invest in Exchange Traded Funds?

There are thousands of ETFs available. Should you invest in them?

Emerging Market Opportunities

What are your options for investing in emerging markets?

Inflation and Your Portfolio

Even low inflation rates can pose a threat to investment returns.

View all videos