It’s an unfortunate truth that, in most cases, you have to look far beyond that basic guidance employed by social security in order to ensure that you maximize your benefits.
However, if you know where to look, discovering how make sure you get every last penny that’s owed to you doesn’t have to be as complex as you might think.
In fact, it can be downright simple. Here are the 3 little rules to maximizing your social security benefits with ease, including how to get paid for waiting…
Rule #1: Wait
The simplest social security rule to live by is to be patient, even if it means you have to sacrifice a little bit right now. The way social security is set up, the most powerful strategy you can employ in almost any situation is to wait from the time you could start receiving benefits to the time you should start claiming them, which is when those benefits are maxed out.
Here are the most influential examples of this strategy at work:
- Spousal benefits are 43% higher at full retirement age (this age varies depending on when you were born, but think age 65 – 67) than at 62 (the age you have the option to start claiming benefits).
- Survivor benefits are 40% at your full retirement age than at 60.
- Basic retirement benefits are 76% higher at age 70 than at age 62!
So from the age you can start claiming benefits to the time those benefits are maxed out, the act of waiting is essentially you job…
Rule #2: Know what you’re entitled to
In addition to retirement benefits, there are 9 other benefits you may have access to. This is just a simple matter of knowing what’s available and if you qualify for it. People leave money on the table all the time because just because they don’t know the money is theirs to claim.
From widower benefits to spousal benefits to divorced widower benefits and everything in between, make sure you know if YOU should be claiming more than just retirement benefits when the time is right.
Rule #3: Timing is everything
As it is with trading stocks, timing is everything when it comes to social security as well. But the perfect timing will vary from one retiree to the next.
It comes down to a mixture of age and size of different retirement benefits between yourself and your spouse.
There would be 1 perfect timing for you if your full retirement benefit is larger than half of your spouses full retirement benefit. But your perfect timing would be entirely different if your age-70 retirement benefit is less than your spouse’s full retirement benefit.
Figure out the numbers and then ensure you find the perfect timing for you. Not doing so could cost you thousands in retirement income…
