Answering Your Questions About Social Security
Social Security isn’t exactly a highly-anticipated brunch topic. And you don’t have to look very far to find contradicting opinions on the topic, and thoughts on how it should impact your retirement strategy.
To make the topic of Social Security even more complicated, every October the Social Security Administration (SSA) announces the annual changes to the Social Security program for the next year.
So what do you actually need to know about Social Security? Are there any changes in 2022 that you should know about?
In this article, we are going to walk through some common questions and let you in on what you need to know about Social Security:
Is there an ideal time to begin claiming Social Security?
There is an ideal time for each person, but the challenge is that the timeframe looks different for everyone, depending on their unique situation. You’ll want to consider your current age, when you plan to retire, other income sources available, and how soon you’ll need money to fund your retirement. A financial planner can help guide you through your unique situation and make a plan that meets your current and future needs.
Should I invest in other sources of retirement income?
The short answer is yes! Whenever possible, you should plan to have additional forms of retirement income outside of Social Security. By having additional sources of income, you give yourself more options for how and when you fund your retirement, and how your dollars can be working for you in even more ways. Depending on your age and the type of debt you have (if any), there may be value in prioritizing debt payoff before investing in retirement.
If you want to start investing in other sources of retirement income, make sure to consult with a financial planner to make sure your money is working for you in the best way possible.
What is considered “retirement age” for Social Security?
If you were born in 1960 or later, your retirement age is considered 67 years old. However, if you can wait to claim the maximum amount in Social Security, then you should wait to claim until you reach 70 years old. Just because you can receive more than the normal payout by waiting until age 70 doesn’t mean that is the right choice for everyone, though. There are many situations where it may benefit you to claim Social Security before that time.
Are there scenarios where it would be best to pull from Social Security early?
Absolutely. There are many scenarios where it might be a wise decision to claim Social Security early. Some of the reasons you may take Social Security early is because you actually need the additional income. You may also choose to take Social Security early because you want your personal investments to grow as much as possible, or if you have reason to believe that you have a shorter life expectancy.
Should I consider any potential health concerns as I’m deciding when to take Social Security?
You should definitely take into account any potential health concerns that may impact your life expectancy. If you have reason to believe you may have a lower-than-average life expectancy, you may want to consider claiming Social Security earlier to make sure you are able to benefit from it.
Should I count on Social Security to be able to fund my retirement?
There are many differing perspectives about Social Security, but we always recommend you have additional retirement income sources. The latest changes show that we can anticipate seeing shortfalls in Social Security starting in 2033 for certain payouts if no further action is taken to correct the shortfall. Whether or not lawmakers make changes to Social Security, it is smart to have a more diverse retirement plan.
Social Security can seem daunting with over 2,700 claiming rules and new changes happening each year. If you have further questions or would like to know more about the best time to claim Social Security, consider joining our free webinar on April 20, 2022, or scheduling a one-on-one consultation with one of our financial advisors at 210 Financial. We would be honored to support you!
Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. Investing involves risk, including the potential loss of principal. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 210 Financial is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies. 1280613 – 4/22
Content prepared by Savage Content Collective
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