For a lot of us, Social Security is something we often hear about, but maybe don’t spend too much time thinking about. While reaping the benefits of Social Security may seem like something in the far future, we’ve shared some ideas to help your make the most of all your hard work when the time comes.
One of the best ways to ensure you’re receiving as much as you should be for Social Security is to stay on top of everything. You can create an online account here to make it easier to track and verify your earnings. Not only can you view your up-to-date financial situation, you’ll be able to change personal information as needed and set up direct deposit if you’re already receiving Social Security payments.
Keeping track of your tax information such as W-2s and 1099s is also a smart way to make sure your numbers are accurate. A paper trail is never a bad thing!
62 is the most popular age to claim Social Security. While that number may not seem tangible yet, it’s wise to evaluate not just your financial standpoint, but where you’re at health-wise as well. It probably comes as no surprise that many Americans wait as long as they can to start pulling their Social Security benefits, as this creates a larger payout down the line. You’ll receive about a percentage more a year until full retirement age (age 66-70), then it jumps to 8%. If you’re in a position where both your health and finances are strong, it’s definitely worth the wait, but if you’re not feeling too certain about how lively you can stay past 62, or if perhaps your family health history isn’t the greatest, it’s best to take the claim and relax.
Just like most things in this world, no one knows your situation better than you, but the whole point of retirement is to enjoy the fruits of your labor, right?
If you’re married, it’s best for the spouse who makes more to wait longer to claim, and the other can claim earlier, ensuring that the surviving spouse is financially supported. Singles should claim later as well, if possible, to receive as much as they can to live off of.
Working with a financial advisor is always a great bet if you’re not super confident about when to retire. Financial experts can help you decide the best time to claim so you can really maximize your benefits. Paragon Accountants works directly with experienced financial advisors if you ever have questions or concerns. Hopefully these tips well help you make the best decisions for your future, because you deserve to retire in style!
