CONCLUSION Obviously, it’s important to build a savings/investment nest egg to help supplement Social Security benefits with your personal retirement income sources. However, given today’s health and longevity among older Americans, it is equally important to create a long-term health care plan to help prepare for a more satisfactory quality of life in your senior years. The simple fact is that Social Security may not always be straightforward. Just like every other facet of retirement income planning, there are strategies you can employ to potentially optimize the benefits you are eligible to receive. Many people are hesitant to delay receiving benefits because they don’t want to lose money they’ve contributed to the system for the past 35 years. While people who apply for Social Security benefits early may get more dollars if they die soon after, the opposite may also be true — they may receive less if they live significantly longer. The monthly benefit paid out at age 62 is actuarially reduced to account for the eight more years that the recipient will be paid benefits as compared to someone who begins drawing payouts at age 70. Waiting to claim benefits until age 70 will result in an increase in your benefits for each year you delayed claiming benefits. The percentage of increase will vary depending on the year you were born. Those born in 1943 or later will see an 8% increase in benefits for each year they delay taking benefits, up to age 70.25 For more information, please contact your local Social Security Administration office, or visit www.ssa.gov regarding your particular situation. What’s most important in making Social Security decisions for your situation is at what point you can no longer live comfortably without those benefits due to job loss, health care expenses or other issues. The question isn’t how to beat the system, but rather how to potentially optimize the amount of income you receive for the length of time that you need it. For this reason, it can be worthwhile to speak with a financial professional before you begin drawing benefits in order to review possible payout scenarios for Social Security benefits to help determine the most appropriate time for you to begin drawing benefits. This can also include a discussion about the role of insurance products in your overall financial picture.
:13: This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency.
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