Social security has become an integral part of this nation, yet many Americans don’t have a very good grasp of the program in general. That’s a problem.
And while everyone needs to do his or her own homework in order to fully understand social security and take advantage of its benefits, you can also give yourself a big head start by knowing a few of the most vital elements of the program.
Here are 3 must-know facts about social securityThis column is meant to prepare you for retirement, and that means giving you the vital information that could allow you to earn more money in retirement and take advantage of every benefit available to you.
So here are 3 facts that could enhance your retirement…
1. Spousal Benefits
Social security bases payments on the amount you earned over a lifetime. But many people don’t realize that spousal benefits are determined based on the other spouse’s work past.
The exact amount, though, will be determined according to age for you and your spouse.
2. Wait
Probably my favorite social security rule is one that I try to tell every member closing in on retirement – if you can wait to start receiving social security payments, wait!
Most people realize that waiting until full retirement age (66) will earn you higher benefits than starting to take those benefits at 62, but far too few realize that you can get the maximum possible benefit by waiting until age 70.
If you can hold off until 70, your benefit boosts 8% each year past full retirement age!
3. Divorce
This one is a bit trickier, but few people know that you can still collect benefits if you’re divorced. If you have all the requirements, your social security payments would be based on your spouse’s earnings.
The catch is that you have to be at least 62 and have been married for at least 10 years before divorce. Plus, if you remarry you won’t be able to collect benefits in this regard.
Social security can be your best friend, but only if you know how to make it work to your greatest advantage. If you’re nearing the retirement age, I strongly recommend taking a half hour each weekend to look into social security rules and how you could use them to have a better retirement.
