Social Security is not something you should just set and forget. There are many factors that determine the level of benefits you receive. Here’s a checklist of 5 Social Security strategies you should consider when planning for your retirement to maximize your income and earning potential to replace your paycheck:
1) Delay claiming your benefits.
You can start claiming your Social Security benefits at age 62, but if you wait until your full retirement age (between age 66 and 67, depending on your birth year), you can receive a higher monthly benefit. If you delay claiming until age 70, your monthly benefit could increase even more.
2) Coordinate benefits with your spouse.
If you’re married, you can coordinate your Social Security benefits with your spouse to maximize your combined benefits. For example, one spouse can claim a spousal benefit based on the other spouse’s earnings record while delaying their own benefit to receive a higher monthly benefit later.
3) Utilize survivor benefits.
If your spouse passes away, you may be eligible to receive survivor benefits based on their earnings record. These benefits can be especially valuable if your spouse was the higher earner.
4) Working in retirement.
If you claim your Social Security benefits before your full retirement age and continue working, your benefits may be reduced if you earn more than a certain amount. However, once you reach your full retirement age, you can work and earn as much as you want without your benefits being reduced.
5) Review your benefits regularly.
Your Social Security benefits can change based on a variety of factors, such as changes in your earnings or marital status. It’s important to review your benefits regularly to ensure you’re receiving the maximum benefit you’re entitled to.
By considering these Social Security strategies, you can maximize your benefits and ensure a more secure retirement.
Sources: https://www.ssa.gov/pubs/EN-05-10035.pdf, https://www.ssa.gov/benefits/survivors/, https://www.aarp.org/retirement/social-security/info-2022/claiming-strategies-for-couples.html, https://www.ssa.gov/benefits/retirement/planner/whileworking.html