Maximizing Social Security Benefits: Tips for Optimizing Your Payout

Retirement

Maximizing Social Security Benefits: Tips for Optimizing Your Payout

Posted by Infinite Wealth Advisors, LLC
6 months ago | October 16, 2023

Social Security benefits play a crucial role in providing supplementary income during the retirement years. Maximizing these benefits is essential for securing a comfortable retirement lifestyle. Luckily, we have a number of strategies to help you accomplish that goal.

1. Delay Claiming Your Benefits. One effective strategy to maximize Social Security benefits is to delay claiming them. The standard age to claim full retirement benefits is 66 or 67, depending on your birth year. However, you can delay claiming benefits up to age 70. For each year you delay, your benefits increase by a certain percentage, ultimately resulting in a higher monthly payout when you do start receiving them.

2. Understand Spousal Benefits and Plan Carefully. Married individuals have the option to claim Social Security benefits based on their own earnings or up to 50% of their spouse’s benefit, whichever is higher. If your spouse has a higher benefit, you can claim spousal benefits and continue to let your own benefit grow, potentially increasing your own payout later.

3. Consider the Timing of a Divorce. If you are divorced but were married for at least ten years, you may be eligible to claim benefits based on your ex-spouse’s earnings. This can be a beneficial strategy, especially if your ex-spouse has a higher benefit amount.

4. Continue Working After Claiming Your Benefits. If you choose to claim Social Security benefits before reaching full retirement age, be mindful of the earnings limit. If you earn over a certain threshold, your benefits may be reduced. However, any reduction is temporary, as your benefits will be recalculated once you reach full retirement age.

5. Consider the Potential Tax Implications. Social Security benefits may be subject to federal income tax if you have other sources of income, such as earnings from employment or withdrawals from retirement accounts. Understanding these tax implications can help you plan your retirement finances more effectively.

By understanding the various options available and how they affect your benefits, you can make informed choices that optimize your Social Security benefits payout. Consulting a financial advisor can also be beneficial in tailoring a strategy that suits your specific financial situation and goals, so remember to meet with us regularly as you progress toward your retirement goals.

 

Have questions? Need assistance?

Use the form below to schedule an appointment.

    Call 877-281-8282 or email kevin@infinitewealthadvisors.com to speak with an agent.