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When Should You Start Planning for Social Security?

Updated: Jul 14, 2023

April is National Social Security Month. For more than 85 years, Social Security has evolved to suit the changing needs of its beneficiaries, whether they are disabled individuals, seniors planning for retirement, or business owners. While the current economic environment may feel unsettling, creating a Social Security claiming strategy can help alleviate some of your concerns.

The Social Security program is designed to assist you on your life's journey by providing services that empower you and structures that safeguard what's important to you. It establishes an income base for you to build upon to plan for retirement. Morris & Pursley Financial Plans is devoted to helping you and your family secure today and the future. However, it is critical that you understand the ideal time to prepare for and receive Social Security benefits, even if you don't work with us.

When should you start receiving Social Security income?

When you're between 62 and 70 years old, you can start receiving Social Security benefits. To find out when is the right time for you, ask your advisor for a Social Security Timing® report.

At age 62, everyone can start taking Social Security, but at a reduced amount. However, once you reach full retirement age, you are entitled to full benefits. The full retirement age is between 65 and 67, depending on when you were born. You can start receiving your Social Security benefit as late as age 70, but delayed retirement credits are no longer applied. The right Social Security claiming strategy could increase your retirement value by up to $100,000!

Schedule an introductory call today and learn the value of your Social Security payment if you begin receiving benefits at age 62. Let us compare that amount to how much retirement value may be added by claiming at full retirement age.

Other Retirement Income Impacts Social Security Benefit Amounts

Most people know that your Social Security benefit payment is determined by your earnings while working and the date you choose to begin receiving benefits. But what many people don't realize is that Social Security can interact with other types of retirement income and create tricky tax situations.

According to the Social Security Administration, 56% of beneficiaries will owe federal income tax on their benefits. Suppose you earn more than a certain amount from other sources while also collecting Social Security. In that case, part of your benefit payment will need to be added to your taxable income on your tax return. It's possible to pay nearly 50% tax on Social Security benefits because total income from Social Security plus other sources exceeds the threshold. Check out this free taxable Social Security benefits calculator to quickly look at your situation.

Choosing when to begin receiving Social Security payments is a critical retirement planning decision for seniors.

How Can Morris & Pursley Financial Planning Help?

Don't leave any of your hard-earned Social Security benefits on the table. Social Security decisions can be complicated and involve a variety of trade-offs, but Morris and Pursley Financial Plans can assist you in determining the ideal timing to claim your benefits. Don't let unclear information about Social Security stop you from making an intelligent decision about when to claim. As your retirement income planning partner, we can help you identify the optimal time to claim Social Security. We can help you navigate all of the complex Social Security rules and regulations. We can help you understand what's at risk, when to claim to maximize your lifetime earnings, and the impact benefit cuts may have on your overall plan.

Disclosure: The information provided in this blog post is for educational purposes only and should not be considered as personalized financial advice. As an RICP (Retirement Income Certified Professional) financial advisor, I am sharing general knowledge and insights based on my professional expertise. The strategies and concepts discussed may not be suitable for everyone, and individual circumstances should be taken into consideration. It is recommended to consult with a qualified financial professional before making any financial decisions. I am not affiliated with any specific financial institution or company mentioned in this article. This blog post is not an endorsement or recommendation of any specific financial products or services. The content provided is accurate to the best of my knowledge at the time of writing, but it may not reflect the most current regulations or developments in the financial industry. Please consult with a professional advisor for up-to-date and personalized advice tailored to your individual financial goals and circumstances.

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