When it comes to Social Security for retirees, one of the biggest questions is “When should I start taking my benefits?” This is a strategy that has to be optimized to your retirement plan. It’s important to understand how your benefits are calculated, how they are taxed, and what happens if you continue to work after beginning to receive benefits.
For many, Social Security could replace a significant portion of pre-retirement income. With this in mind, it could pay to maximize when you elect to receive benefits. If you’re married, you’ll also want to partner with your spouse on the timing of benefits, and how to get the most, depending on your lifestyle. Any discussion about your options for applying for Social Security should include your financial advisor. And you’ll want to iron out any potential tax implications with your accountant.
Every retirement plan will be different, so each Social Security optimization strategy will be different as well. This is why we make sure your Social Security benefits are very much a part of our retirement strategy conversation.