Important Social Security Tips
Almost all Americans fall into one of two groups. You’re either receiving Social Security Benefits or you will someday. So how do you make the most of it? You may be thinking that Social Security is something to think about later. But steps you make now can have a big impact on your future financial security. Why bother? Social Security won’t be there for me anyway. Let’s put that myth to rest right away. Yes, the Social Security trust fund is projected to run out in 2034 or 35. But that doesn’t mean the program is going away. The worst case scenario is that benefits would have to be reduced. Should I start receiving Social Security benefits at 62 or at full retirement age 66 or 67? We usually advise folks to wait if they can because it means their check will increase by 8% each year. However, certain individuals might do better by taking benefits early. Don’t depend on Social Security as the only source of your retirement income. It was never intended to be more than about 40% of the average worker’s pre-retirement income. Another reason to delay benefits is if you’re still working. If you start benefits before full retirement age, your check will be reduced $1 for every $2 you earn above $18,960. You’ll be reimbursed the amount withheld after you reach full retirement age. After full retirement age, you can earn any amount without it affecting your benefits. Coordinate with your spouse. Having a working spouse gives you more options. You can elect to have the one making less start receiving benefits earlier while the higher earner delays benefits. That gives you some income earlier; but you’re still increasing the other spouse’s future benefit checks. Go to SSA.gov to set up a My Social Security Account. There you’ll be able to see the record of your income and the payroll taxes you’ve paid. You then can estimate your future benefits. On today’s program we also answer a few of your questions: --My son’s separated from his wife and they’re soon to be divorced. They are co-owners on a credit card that she is ringing up large debts on. She does this without telling my son. I’m afraid that when they actually do get divorced that he’s going to be saddled with this debt that he has nothing to do with. --We have a time-share. Is it worth it? Is there an easy way to exit out of it? --I’ll be receiving $50,000. What’s a good way to invest that? I’ll be retiring at year’s end. Remember, you can call in to ask your questions 24/7 at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can listen to past programs, connect with a MoneyWise Coach, and even download free, helpful resources like the free MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for the very latest discussion! And remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.