As you get nearer to retirement, making a decision on the best time to apply for your Social Security retirement benefits may seem the same as throwing darts at a dart board. There are so many decisions to make, including:. One of the most important decisions you'll have to make is at what age to start collecting your Social Security income. A few of the issues you will need to contemplate include:
Is there a ideal age to start receiving your Social Security benefits?
If you didn't have a hundred concerns about Social Security before, you should now! Here are some tips to help you get the maximum Social Security retirement income you are entitled to:
Boost Your Social Security Earnings:
Your Social Security retirement benefits is calculated on your top 35 years of salary which means that it's important to get as many "high earning" years in as possible. Consequently, being employed even one year longer at a good paying job could create a big difference with your retirement benefit.
Postpone Taking Your Social Security Retirement Income:
Social Security penalizes you for every month you take your Social Security before you reach your full retirement age, with the highest possible penalty being 25% if where you begin taking benefits at age 62. Despite the fact that starting your benefits earlier could be tempting, those who are willing to wait can increase their Social Security retirement income by up to 30% (this includes inflation increases) just by waiting until full retirement age.
Work Part-Time During Retirement:
Although you are limited in how much money you can get paid if you are below full retirement age and receiving Social Security, once you reach full retirement age you may earn as much income as you would like without your retirement benefits being penalized. Another suggestion could be to take a part-time job after you retire and delay applying for Social Security benefits.
Collect Based upon Your Spouse's Benefits:
When you're married, you can withdraw Social Security spousal benefits based on your earnings, or you could collect half of your spouse's benefit, whichever is larger. If you and your spouse are not the same age, you may need to do some planning to guarantee you get the maximum benefits, but this is definitely a technique to think about if one spouse makes a lot more than the other, and also if one spouse has been away from the work force for many years.
Tap Into Your Ex Spouse's Benefits:
The spousal benefit pertains to ex-spouses also. If you were married to your ex-spouse for at least 10 years, and you also aren't presently married to somebody else, you can collect up to 50% of your ex spouse's benefits. You do not have to speak with your ex-spouse to claim your benefits; in reality they may never find out unless you tell them, plus it won't change their benefits in the slightest.
These are just a few tactics to help you get the maximum Social Security retirement benefits. Withdrawing your Social Security retirement income can be a very confusing decision and will have an impact on the rest of your retirement, so please speak with a specialist before you make any decisions on your own.
How Social Security Spousal Benefits Work
Can a spouse collect on her husband's social security if she reaches retirement age before her husband? No. In order for a wife to collect Social Security benefits on her husband's earnings the following requirements must be met:
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