Are you like many other senior Americans who mistakenly believe they should begin taking their Social Security benefits as soon as you’re eligible at 62? Given certain circumstances, taking your Social Security benefits early may be the right decision for you. But for many others, taking Social Security benefits early is a financial mistake that brings major consequences to their security in the future. So how do you know when the right time to take Social Security is for you? Working with a financial advisor is key to tackling the complexities associated with Social Security benefits and ensuring you make the decision that is right for you.
It’s More Complex Than Now Or Later
Answering the question of when to take Social Security benefits is more complex than simply choosing to take it early or to wait and receive it later. For many people, this decision is the biggest financial choice they will make regarding their retirement. According to the Social Security Administration1, (among elderly Social Security beneficiaries) 50% of married couples and 70% of unmarried persons receive 50% or more of their income from Social Security.
What would happen if you outlived your retirement savings? This is the single greatest fear for most seniors entering retirement.
The best thing to do is to think of your Social Security benefits as an annuity. Choosing to begin your Social Security benefits at the right time can help you maximize the amount of your monthly payout. A financial planner can help you determine how to maximize your benefit amount by taking advantage of the high earner benefit, coordinating benefits of spouses, and maximizing the surviving spouse benefit. There are literally thousands of options you could choose from on when to begin taking your Social Security benefits. Financial planners have access to specialized Social Security Analysis software that can analyze your unique circumstances and help determine when the right time to begin taking benefits is for you.
Your Financial Planner Has More Knowledge About Your Personal Circumstances Than Social Security Professionals
Social Security professionals are not meant to be financial advisors, but every day they are answering financial questions for seniors trying to decide when to begin taking their benefits. These professionals are often very good at what they do, and they certainly don’t mean to provide ill-advice, but they don’t have all the information needed about your personal circumstances and your overall retirement plan to provide customized recommendations. Your financial planner will know your entire retirement plan and how your Social Security benefits will play into that picture.
Talk To A Financial Advisor About When You Should Take Your Social Security Benefits!
If you are nearing retirement and considering when to begin taking your Social Security benefits, contact Focus Wealth Strategies to schedule a consultation with our financial planners first. Our team works together to pair you with the right advisors for your circumstances. We can help you plan for and transition into retirement. Call our Brandon office at (813) 305-0411 or our Bradenton office at (941) 776-0589 or complete our online contact form to schedule your free initial consultation with one of our financial advisors!
- Social Security Fact Sheet. Social Security Administration. 2019. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.