Social Security and Your Financial Plan

Dec 28, 2020 11:24:45 AM / by Michael Dailey

social-security

 

Does your financial plan include social security? If not it’s time to connect with your financial professional. Developing a plan today will go a long way in ensuring you have the income in retirement you need to live out your goals. Below are some of the things you should consider when it comes to Social Security.

 

How can you max out your benefits?

You can start collecting Social Security as early as age 62. The problem is that if you start collecting before you reach your full retirement age (FRA), you’ll receive a lower monthly payment. If your FRA is 67, but you begin to claim benefits at 62, you will get 30% less than you could receive. However, this reduction will decrease for each month you wait after age 62, up until your FRA. If you can wait your benefit amount will increase each month until you turn 70.

 

How does Social Security impact your retirement income?

Social security benefits are designed to replace a portion of your income in retirement, not all of it. The benefits should be a supplement to your income within your complete financial plan. Your plan should be based on what you know today and flexible enough to adapt to any changes. Good financial plans start with outlining a budget to identify expected expenses in retirement as well as sources of income at your disposal.

 

How long do you need to work?

Your financial professional can help you develop a retirement plan that includes Social Security. While it’s advisable to max out your benefits your plan is about accomplishing your specific goals on your timeline. Understanding your individual circumstances, your Social Security benefits, life expectancy, other assets and retirement income streams, are all important variables to the equation. Working with your financial professional you can calculate a time range for which you no longer need to work.

 

As Benjamin Franklin once said, "If you fail to plan, you are planning to fail.” Make an appointment to talk with your financial professional today to develop a financial plan. 

 

Michael Dailey

Written by Michael Dailey

Michael Dailey is the Founder and CEO of InvestorKeep, a company passionate about help you save money and maximize your investments. The average investor loses well over $100K to the implications of investment fit, fees, and quality. InvestorKeep gives you an easy way to monitor investments helping you keep and earn more.