What To Know Before Claiming Social Security

Here is what you need to know…

We work our whole lives with the hopes that Social Security will protect us when we are too old to work for ourselves. Sadly, however social security sometimes isn’t as much as we’d hope for and can’t make ends meet.

For most people Social Security only covers about 40-45% of our working income and more is needed to cover other costs.

Here are some important things you should consider before you claim Social Security to maximize your benefits.

Make sure you fully understand the benefits based on your age

Once you hit your full retirement age (FRA), which is at 66, you will receive the standard benefits. However, if you claim Social Security before 66 you will get a lower amount for every month earlier than your 66th birthday.

On the flip side, if you claim social security after 66 you will receive more for every month after your 66th birthday up until 70 years of age.

Estimate your lifespan

The longer you believe you will live, the later in life should you claim Social Security.

You should examine your overall health and also take into account your family medical history and when your Parents and Grandparents passed away to help you better calculate it.

You can also speak to your doctor to get an ever better prediction.

Consider your financial needs

When you decide to claim your social security benefits, the decision will be yours alone. However, always plan for the unexpected and remember not to put yourself in a situation where you are living paycheck to paycheck.

Additionally, according to Fox Business, “Studies have shown that keeping your annual withdrawal rate at 4% or lower could help you avoid outliving your savings. So if you accumulated $500,000 by your first year of retirement, you could withdraw $20,000 annually, or about $1,660 a month, under this scenario.

* Additional Disclaimer: All content provided by this newsletter is for informational and educational purposes only and is not meant to represent trade, investment, or healthcare recommendations.