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Social Security Planning

Social Security Planning2024-04-16T17:30:10+00:00

Maximize your Benefits with Social Security Strategies

Social Security is a major source of income for most people age 65 and over. Even though Social Security is one of the most important phases of your retirement strategies, it is also one of the most confusing. Many believe it is cut and dried and do not realize there are a variety of options. Intelliplan can help alleviate these headaches.

Social Security Benefits are Not Automatic

Shockingly, Social Security is an opt in program between the ages of 62 and 70. Because the Social Security Administration has no way of knowing when you want your benefits to start, enrollment is not automatic. We know what you need to know about the process of starting Social Security retirement benefits, and what you should consider when deciding the best time to apply. Intelliplan can assist in timing this application to maximize benefits.

How to “Maximize” Social Security Benefits

There are several factors that can impact your Social Security draw. Below are some ways we help clients improve that amount.

Your Social Security payments are calculated using your 35 highest-earning years in the workforce. If you don’t work for at least 35 years, zeros are factored into the calculation and reduce your payments. Even a low-earning year is better than having a zero averaged in

Social Security monthly benefits are reduced if you start payments before your full retirement age, which is 66 for most baby boomers and 67 for everyone born in 1960 or later. Workers who sign up at age 62 will get 25% smaller monthly payments if their full retirement age is 66 and a 30% benefit reduction if their full retirement age is 67.

The more you earn and pay into Social Security up to the taxable maximum of $137,700 in 2020, the higher your retirement payments will be. Earnings above the taxable maximum are not subject to Social Security taxes or used to calculate your benefit. Working an extra year, even after you retire, could increase your future payments if you now earn more than you did earlier in your career.

Your Social Security payments are calculated using your 35 highest-earning years in the workforce. If you don’t work for at least 35 years, zeros are factored into the calculation and reduce your payments. Even a low-earning year is better than having a zero averaged in

Social Security monthly benefits are reduced if you start payments before your full retirement age, which is 66 for most baby boomers and 67 for everyone born in 1960 or later. Workers who sign up at age 62 will get 25% smaller monthly payments if their full retirement age is 66 and a 30% benefit reduction if their full retirement age is 67.

The more you earn and pay into Social Security up to the taxable maximum of $137,700 in 2020, the higher your retirement payments will be. Earnings above the taxable maximum are not subject to Social Security taxes or used to calculate your benefit. Working an extra year, even after you retire, could increase your future payments if you now earn more than you did earlier in your career.

Married individuals are eligible to claim Social Security payments worth up to 50% of their spouse’s benefit if that amount is higher than their own payment. To get the full 50%, you need to sign up for Social Security spousal payments at your full retirement age, which is 66 for most baby boomers. Spousal payments are reduced if you claim them before your full retirement age. Ex-spouses are also eligible for spousal payments if the marriage lasted at least 10 years.

When one member of a retired married couple passes away, the surviving spouse can inherit the deceased spouse’s Social Security payment if that amount is higher than his or her current monthly payment. Married couples can increase the Social Security benefit the surviving spouse will receive by having the higher earner delay claiming Social Security. A one-time death payment of $255 can also be claimed by a widow or widower if he or she was living with the deceased or receiving Social Security benefits on the deceased’s record.

The most effective Social Security claiming strategy for you depends on how long you will live. If you have a major health problem, it can make sense to claim benefits as soon as possible (unless you want to leave a higher benefit to a surviving spouse). If you’re healthy and have parents who lived into their 90s, there’s a case to be made for delaying claiming your benefit in order to receive a higher Social Security payment in your 70s, 80s and beyond.

Married individuals are eligible to claim Social Security payments worth up to 50% of their spouse’s benefit if that amount is higher than their own payment. To get the full 50%, you need to sign up for Social Security spousal payments at your full retirement age, which is 66 for most baby boomers. Spousal payments are reduced if you claim them before your full retirement age. Ex-spouses are also eligible for spousal payments if the marriage lasted at least 10 years.

When one member of a retired married couple passes away, the surviving spouse can inherit the deceased spouse’s Social Security payment if that amount is higher than his or her current monthly payment. Married couples can increase the Social Security benefit the surviving spouse will receive by having the higher earner delay claiming Social Security. A one-time death payment of $255 can also be claimed by a widow or widower if he or she was living with the deceased or receiving Social Security benefits on the deceased’s record.

The most effective Social Security claiming strategy for you depends on how long you will live. If you have a major health problem, it can make sense to claim benefits as soon as possible (unless you want to leave a higher benefit to a surviving spouse). If you’re healthy and have parents who lived into their 90s, there’s a case to be made for delaying claiming your benefit in order to receive a higher Social Security payment in your 70s, 80s and beyond.

Discover a Tax Free Supplement

Increase your benefits by leveraging additional policies

Many strategies to improve Social Security rely on delaying benefits. With My Life Self Lending, you can live on you earned equity, while your benefits accrue.

Make the Best Decision for You

The is no set method. Intelliplan analyzes and recommends efficient plans for any financial requirements.

There’s no one-size-fits-all age at which it’s best to start collecting Social Security, enrollment is not automatic. Take advantage of this fact and plan your Social Security payments to fit your own life.

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INTELLIPLAN FINANCIAL

670 Morrison Rd., Suite 210
Gahanna, OH 43230

(614) 255-7547
hello@intelliplanfinancial.com

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