How much am I going to get and when should I begin?

One of the most common questions I am asked as people approach Social Security age is, “How much am I going to get and when should I begin?”

Naturally, my answer is always the same… it depends. I am not a Financial Planner, and I don’t play one on TV 😊. For specific information, talk to your Financial Advisor or visit the Social Security Website to find out how much you will receive.

Here is the general information.

Social Security Benefits are accrued over a person’s working lifetime. To be eligible for Social Security a person or their spouse needs have worked and paid into the system for at least 10 years (40 quarters of work). Once a person has done this, they will be vested and eligible Social Security and Medicare. Generally the more you have earned, the higher your monthly Social Security Benefit will be. Conversely, the higher your income in retirement is, the higher your Medicare Part Premium may be.

As to when to begin Social Security, the younger you begin, the lower benefit may be (read this).

If you start your Social Security while you are still working, you may have to pay additional taxes (depending on your income). If someone has a family history where most family members die young, starting early may be prudent.

If someone has longevity in their family and doesn’t need income to live, deferring Social Security until age 70 may mean significantly more income over their lifetime.

As you can see the answers to these questions aren’t easy.

Make certain your Advisor uses a Social Security calculator to help you with this this decision. Starting too early or to late could be a mistake. No one has a crystal but a good advisor, looking at your comprehensive financial means, should be able to help you make the right choice.

Please let me know if you need a referral and I will be happy to help.

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