The Importance of Understanding Social Security
On average, Social Security makes up 64.8 percent of the total household retirement income making it the primary resource of income during retirement for most of us.
That makes the decision of when and how to take your Social Security a critical retirement decision. In fact, the difference between the best and worst Social Security decision can be $30,000, $50,000, $100,000 or more in lifetime benefits!
Increasing every dollar possible in your Social Security income means one less dollar you will have to take from your nest egg to supplement your retirement income.
Remember that Social Security benefits only provide partial replacement for qualified retirees and disabled individuals, as well as for their spouses, children, and survivors. In order to qualify for benefits, an individual must pay into the Social Security program and accrue 40 credits. Every quarter an individual works accrues 1 credit or 4 per year. The Social Security benefit amount an individual receives is based on their earnings history, the year they were born and the age when they begin to collect their Social Security benefits.
Spouses who don’t amass the requisite number of credits or who don’t work can receive benefits based on their spouse’s work record. Divorced individuals can receive benefits if they were married for 10 years or more and have not remarried.
Social Security Benefits may be taxed depending on the individual’s income and tax filing status.
There are many choices that can make a difference in the amount of benefits that can be collected over your retirement years. At Smart Money Plan, we use software that has many calculations to determine the appropriate Social Security filing time to potentially maximize your overall retirement plan, goals and lifetime Social Security benefits.
Contact us for a complimentary consultation.
(805) 984-4962 | [email protected]
We are not affiliated or endorsed by the Social Security Administration or any government agency.