Getting Strategic with Social Security

Getting Strategic with Social Security

While social security should be just a portion of your overall retirement strategy, it’s an important part to get right.

Social Security is a crucial component of your retirement plan, and understanding how it works is essential. Signed into law by President Roosevelt in 1935, the system provides retirement income funded by taxes from current workers. The amount you pay into Social Security during your lifetime determines your benefit, with the Social Security Administration (SSA) using your 35 highest-earning years to calculate your monthly payments. The more you contribute, the higher your benefit will be.

You can start receiving Social Security as early as age 62, but your monthly benefit will be reduced by about 0.5% for each month you claim early. Conversely, if you wait until your “full retirement age” (which varies based on your birth year) or beyond, you can earn an 8% bonus for each year you defer payments, up to age 70. Deciding when to take Social Security involves considering your life expectancy, financial needs, and potential investment opportunities. Consulting with a financial advisor can help make the best decision for your situation.

While Social Security is an important piece of the retirement puzzle, it should not be relied upon as your sole income source. The average monthly benefit in 2017 was just $1,523, which may not cover all your retirement needs. It’s crucial to include Social Security as part of a comprehensive retirement strategy and work with a financial advisor to maximize your benefits and integrate them into your long-term plan.

Grab a copy of our new resource that provides information on how the Social Security system works and strategies for getting the best benefit possible. http://bit.ly/2mbu0xF.

Published On: September 25, 2019|Categories: Resource Center|Tags: , |

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This material is provided for informational purposes only. The information contained herein should not be construed as the provision of personalized investment advice. Information contained herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Past performance is no guarantee of future results. Investing in the stock market involves the risk of loss, including loss of principal invested, and may not be suitable for all investors. This material contains certain forward-looking statements which indicate future possibilities. Actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that any views and opinions expressed in this material will come to pass. Additionally, this material contains information derived from third party sources. Although we believe these sources to be reliable, we make no representations as to the accuracy of any information prepared by any unaffiliated third party incorporated herein, and take no responsibility therefore. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without prior notice. For additional information about CTS Financial Planning, Inc. and the material posted on this website, please review our Important Disclosures.

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