Strategies for Filing for Social Security

Financial planning is a wonderful profession that allows me to help people plan for the future - homes, education, travel, retirement, etc. Over the past five or more years there has been a growing movement to maximize Social Security benefits by employing little known strategies.

There are provisions that allow a couple to add thousands, tens of thousands of dollars to their future retirement income - when you learn the best time and way of applying for Social Security.

If you are too young to even think about SS, then pass this information along to your parents or aunts and uncles. If you are already receiving SS then pass this along to younger friends and your children. There is nothing illegal; but the folks at SS offices, as knowledgeable as they might be, are not aware of some of these provisions.

For example: File & Suspend
A husband reaching 66 (or 67) may file for SS and then suspend receiving payments. By filing, it then allows his wife to file for spousal benefits, receiving a monthly check for the equivalent of half his benefit. He then waits until 70 before activating his benefit which has grown by 8% each year giving him a higher monthly amount and increasing the survivor benefit for his wife.

Or someone who has been divorced may receive a higher benefit if he/she applies for spousal benefits from the ex-spouse and allows his/her benefit to grow until age 70, It has NO impact on the amount the former spouse receives! But you must have been married 10 years or longer. So for anyone contemplating divorce and nearing the 10 year mark, delay the final divorce decree until you reach 10 years.

Be $ Smart - Find a trusted financial planner who is familiar with Social Security Strategies. You may reap many years of benefits that will far exceed his/her fee!

Social Security Estimate of Benefits - a valuable tool!

Many years ago, the Social Security administration did not mail benefit estimates. You had to visit one of their offices to learn what you might receive at retirement. Then in 1999 they began mailing them. With the advent of the Internet, they stopped mailing mid-2011 as a cost cutting measure. Now, by popular request, they will send the statements to those workers 25, 30, 35, etc. Every 5 years you will be mailed a statement until you are 60, then it will come every year.

What is so important about this statement?
It is a valuable financial planning tool that gives workers important information about their earnings, tax contributions and estimates for retirement, disability and survivor benefits!!

If your estimated benefits will pay you $1800 per month and you need $5000 a month to live, then you know you need to save enough to provide $3200 monthly.
It can be a real wake-up call to start saving! Every five years it can be a beneficial jolt to make you sit down and calculate if you are on track for retirement. The numbers may reveal that you must work longer than you planned.

You may view your benefits more frequently if you open a MySocialSecurity account online. Go to SSA.gov and input your SS number, mailing address and valid e-mail address. There will be security questions only you will know that match the information on file with SS.

With an online SS account you will receive an annual reminder to verify and update your information. It is critical to review your earnings as sometimes there may be errors. SS gives only a limited time to correct any earnings errors.

Be $ Smart - know your estimated SS benefits. Open a SS account online.