When to Take and How to Maximize Social Security Benefits
In this video, Cary Stamp, leading investment and financial advisor based in the Jupiter, FL area, briefly addresses one of the most common question asked of financial advisors: “When should people start taking social security benefits?”.
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Hi, I’m Cary Stamp. This is a Principled Wealth Moment. Today I’m going to talk about one of the most common questions that we get as financial advisors, and that question is very simple: when should you take your social security?
So, everybody has the option if you have 40 quarters paid into the social security system, which essentially amounts to 10 years of work, to take social security as a reduced benefit at age 62. Most people shouldn’t do that, and I’ll tell you why in just a moment. The rest of us, depending on when we were born, can generally take social security some point between 66, 66-1/2, or if you’re a whippersnapper like me, at age 67. So, that’s what we call full retirement age in the social security system.
When you look at the benefits calculation, it generally gives you the benefit at your full retirement age. It’ll probably give you the reduced benefit at age 62, but everyone also has another option, and the other option is to delay your social security. And you can delay your social security for several years until you are age 70. If you choose to delay social security, you get an added bonus from the government. Every year that you delay between age 66, 66-1/2 or 67, you will get an 8% annual increase in your social security benefit. So if you think you’re going to live a long time, if there’s longevity in your family, or if you’re making money between this age and this age, you may not want to have this income from social security so that you don’t have to pay tax on it.
This is a very complicated subject and the answer is not the same for every single person. We have a calculator that we use, it’s financial planning software, that puts into that calculation what you earn, if you have a spouse, what they earn, how long you plan to work, and how long you plan to live. If you want to know more information, you’re welcome to call our office (561) 471-7700 or email me personally at firstname.lastname@example.org.
This is social security, the most common question that we get in the financial planning world. I’m Cary Stamp, and this has been a Principled Wealth Moment.
Cary Stamp & Co, principled wealth management and financial planning, Jupiter, Florida.