Are you nearing retirement?
For some people, the date couldn’t come soon enough, but for others, retirement can be an intimidating milestone, especially if you’re not prepared.
Either way, I think we can all agree that everyone deserves the absolute most from their Social Security savings and I’m here to give you a few tips on exactly how to do that.
By simply following this advice, you could be on your way to increasing these payouts by more than 30%!
When it comes to getting the most out of Social Security and planning for retirement, it’s important to understand that TIMING IS EVERYTHING.
You’ve essentially worked sixty-plus years to accumulate the benefits you have or will soon have at your disposal, so why not hold out just a little longer?
Delaying retirement funds past your eligibility age may prove to be well worth the wait.
Sixty-two marks the earliest age that you can collect Social Security. Many people choose to tap into these savings at the first chance they get, but what they don’t understand is doing this reduces their monthly benefits by 30%!
Obviously there are other factors, such as healthcare expenses, to take into consideration when planning for retirement, but many individuals simply can’t afford to prolong this income.
However, the majority of people who don’t face these obligations can easily avoid this reduction and even earn an additional 8% for each year they hold out from claiming their money.
But like many things that seem too good to be true, there is a catch…
No, you can’t rack up a never-ending supply of 8% bonuses by sitting on your Social Security fund. Instead, a Full Retirement Age or FRA for short is implemented to set a limit for how much you’re rewarded for this patience.
This FRA usually falls around the age of sixty-six and extends to seventy, which means you have the opportunity to multiply this 8% up to four times if you’re willing to wait.
Rather than pulling your funds out early and receiving a monthly reduction of 30%, why not delay the process and receive and extra 32% instead?
The system literally pays you to be patient!
Even if you’re content with this reduction, you may want to consider the actual amount of Social Security that you’ve managed to gather.
Social Security is based off the thirty-five-years where you earned the most revenue. If you happened to have worked less than thirty-five-years, then these years of zero income are counted against you.
This has a significant impact on the total of Social Security that you’ll receive, but it doesn’t hurt to work a few extra years if it means increasing this volume.
It’s important to make the most out of Social Security when planning for retirement.
Before you make the decision to finally withdrawal, remember these tips so you can be sure you’re using the fund to its full potential.