Is Your Retirement Date Nearing? The 3 Social Security Laws You Should Know

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Social Security will likely play a significant part in helping you pay your costs after you retire. Once your time in employment has ended, you must set yourself up with a monthly benefit that will allow you to cover your expenses and have some fun. To make the most of your Social Security payments after you retire, you must familiarize yourself with the program and devise a sound plan. To do that, you’ll need to get acquainted with a few basic principles. Let’s discuss a few things you need to consider.

The longer you wait to file, the greater your benefits will be.

To obtain Social Security, you must have 35 high-earning years. The age of enrollment determines the monthly benefit amount. Full retirement age (FRA) is when you start getting your entire Social Security payout based on prior earnings. Your birth year influences your eligibility for FRA.

You may start getting benefits at 62. Each month you register with FRA reduces your costs by one month. Delaying your file may be wise. Each year you postpone Social Security beyond the FRA, your payouts rise by 8% until age 70. This predicts a 24-32% lifetime increase.

If claiming spouse benefits is a better bargain, then go ahead.

Benefits from Social Security depend on one’s wages. However, your benefit doesn’t have to be based on your income history if you’re not a high earner. When it comes to money, you might claim a spousal benefit instead. A spousal benefit may only be worth half of what your current or previous spouse receives in benefits. Once your husband gets Social Security, you may earn spousal benefits, but you’ll have to wait. Even so, half of your spouse’s monthly benefit may be more than 100% of your own.

After your death, your spouse will be able to claim your benefits.

Even though applying before FRA means you’ll earn less money, you may want your Social Security payments as soon as possible. If you die, your spouse will earn a monthly payment equal to what you get as a surviving spouse. The higher your death benefit, the more money you’ll leave your spouse. Your monthly payment will increase after your death if your spouse is eligible for Social Security based on their employment history. Postponing your application may help your family.

Finally, make sure you understand the rules. Rules and regulations have abounded in the Social Security system. As you near the end of your professional journey, take some time to familiarize yourself with how it all works.

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Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].