Ready to demand social security? Do these 3 things before archiving
Ready to demand social security?  Do these 3 things before archiving

Ready to demand social security? Do these 3 things before archiving

If retirement is on the horizon, you may be preparing to claim social security. But the decision to apply for benefits is big. After all, the monthly benefit you lock in is the amount you can expect to receive for the rest of your life (obviously not including annual cost of living adjustments), so it’s important to make that decision right.

You might think you are ready to make demands Social Security based on various factors. But before you do that, check out these key points from your list.

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1. See what monthly benefit you are entitled to

You can assume you are queuing for a particular monthly benefit, but that number may be lower than expected. Therefore, it is a good idea to check your most recent earnings statement and see what benefit you can actually get. This information is available online. All you have to do to access it is create an account

Let’s say you expected to receive $ 2,000 a month from Social Security. But when you access your most recent earnings statement, you can see that you are only queuing for $ 1,800. It can make you delay your submission a little so you can grow your monthly benefit to a higher amount.

2. Assess your retirement savings

Ideally, social security will only represent a portion of your total retirement income, and you will have savings to supplement your monthly benefits. Before making your claim, it is important to see how much purchasing power your savings are likely to give you.

Let’s say you’ve managed to accumulate a $ 500,000 IRA or 401 (k) plan balance. It’s not a small amount of money. But keep in mind that you also need the money to last for what could take decades.

If you decide to raise your savings on one rate of 4%, which is what financial experts have long recommended, which will leave you with $ 20,000 in annual income. If you expected more, it can be a tough wake-up call – but delaying your application for social security to gain a higher benefit could help compensate.

3. Make sure your spouse is on board

If you are married and retiring, it is not just your own financial needs that you need to consider. You will also need to think about what is best for your spouse.

Imagine that your spouse has never worked and is much younger than you are. When you pass away, your spouse will be entitled to survivor benefits equal to the amount you charge each month from Social Security. If you claim your own benefits early, you will leave your spouse with less income, but if you delay your application, you will leave your spouse with more.

Or it may be the case that your spouse had a high enough income that they are entitled to a decent benefit of their own. In that case, you may want to coordinate your applications so that at least one of you increases your benefit by delaying your claim. The point is, no matter what, having these conversations so you are on the same page.

Do not rush into things

The decision to sign up for social security is not one to be taken lightly. Be sure to solve these key tasks before claiming benefits. If you do not, you may end up regretting your decision.

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