Seniors must ensure they have a sufficient amount of retirement income to provide for their needs. For most retirees, their two primary income sources are Social Security and savings. This is why it’s so essential to understand how much retirement money will come from Social Security.
Unfortunately, many future retirees overestimate how much their retirement checks are worth. To make sure you avoid this retirement planning mistake, here are the facts you need to know about the typical Social Security benefit available to seniors.
With inflation at multi-decade highs, the annual increase to Social Security’s has been a hot topic lately. With all the coverage this is receiving in the news, I’ve constantly been asked the same questions.
The most common questions I receive are:
How is the annual increase in Social Security calculated?
What happens if they switch to an alternate method (CPI-E)
How is the annual increase applied to a Social Security benefit?
What age does the annual increase in Social Security start applying?
Do you have to be receiving benefits to get the annual increase?
Let’s answer each of these questions individually…
When filing for Social Security before your full retirement age, it is imperative that you understand how the income limit works. Don’t miss this! You’ll receive an overpayment notice if you fail to adhere to these rules, and it may result in your benefits being terminated.
This is one of the topics that I’m asked about all the time. When it comes up, I’ve noticed that most people have the same questions.
Why do we have an income limit?
How much can I earn?
What happens to withheld benefits?
Is the income limit based on single or joint income?
What if I retire during the year (after exceeding the annual limit)?
What income counts towards the Social Security income limit?
Today, I’ll give you the answer to each of these questions. When you finish reading this, you’ll no longer find this topic to be a mystifying no-man’s land waiting to trip you up.
As a retiree, it’s important to plan for all costs that you’ll incur — including taxes. Unfortunately, it comes as a surprise to many seniors that the federal government and some state governments tax Social Security benefits.
Whether you’re currently receiving Social Security checks or plan to in the future, there are three key rules you should know so you’re prepared for the impact that your tax bill will have on your retirement budget.
For a majority of recipeints, Social Security benefits are shrinking.
This isn’t due to a new rule that has made it under the radar, this is actually a nearly 40 year old law that is finally starting to have the effect the creators knew it would. And it’s only going to get worse.
If you are planning for your retirement, I want you to stop what you’re doing for the next few minutes and pay CLOSE attention because I don’t want this to sneak up on you as a big surprise once you retire.
Many people who claim Social Security receive retirement benefits equal to a percentage of income earned over their career. But that’s not always the best choice. In some cases, you may be better off opting for spousal benefits instead if your husband or wife earned more money than you did.
Spousal benefits are worth up to 50% of the standard benefit your partner is entitled to at full retirement age. When your partner was the higher earner, this may be more than your own benefits would be. And if you didn’t work enough to become eligible for retirement checks, spousal benefits may be your only source of Social Security income later in life.
Social Security checks are a vital income source for many older Americans, and seniors are often eager to start them. But while retirees have the option to file for benefits between age 62 and 70, claiming early can reduce the amount of each payment.
Starting benefits “early” means getting your first check any time before full retirement age, which is between 66 and four months and 67 depending on birth year. While many people opt to begin their benefits prior to FRA, it’s important to understand four major consequences of that choice.