Social Security: a Perplexing SystemSubmitted by Bellwether Wealth on March 22nd, 2018
To many working individuals, Social Security is merely a portion of funds taken out of your paycheck every month. But for some people, it can be either all or a portion of their monthly income whether they’re retired, disabled, widowed, or caring for someone disabled. It’s a multi-dimensional system that was first developed to pay those age 65 or older a continuing income after retirement, and has now transformed into caring for more than just retirees. So what does this mean for you, and how can you squeeze the most out of your hard work?
- First, you have to work for at least 35 years to get a payment calculated without zeros factored in, and we’re not talking about the good kind of added zeros. Not to sound obvious, but if you make more, your social security benefits will be that much better.
- And, while it takes 40 credits (roughly equivalent to 40 quarters of work earning at least $1320 a quarter), your benefit will be highest if there are 35 years with at least some earnings, as benefits are based on your 35 highest years of earnings. “
- It’s best to work until the full retirement age of 66 or 67 (depending on the year you were born), but even better if you wait until age 70 as it increases your payment about 8 percent each year.
- Spousal benefits also impact how much you can earn in social security, too. There are many factors that come into play when claiming these benefits, so it’s especially important to do a little research and discuss with your financial advisor before making any decisions.
- And finally, the Social Security Administration discontinued mailing paper statements to those under age 60 in 2017, so be sure to keep up on your account and make sure your getting credit for your effort.
Our team of experienced, professional advisors is more than happy to help you review and understand your social security account and discuss how you can best maximize your benefits. It’s important to us to help you reach your financial goals and prepare for your future. Contact our office for more information at 402-476-8844 or email email@example.com.