How to Maximize Your Social Security Benefits, Ep #85

<p>How do you factor social security into a retirement plan? What is my process? What do people do wrong with social security because they don’t understand how it works? In this episode of the Retirement Made Easy podcast, my goal is to simplify social security benefits to help you make an informed decision.</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:15] How to get a FREE retirement assessment</li> <li>[4:25] Social security basics you need to know</li> <li>[8:35] Understanding the cost of living adjustment</li> <li>[11:18] Should you claim your benefit early and reinvest the money?</li> <li>[12:44] The social security survivor benefit </li> </ul> <h2>Social security basics that you need to know</h2> <p>Most people know that you need to have worked 10 years or 40 quarters and paid in taxes to qualify for social security retirement benefits. Social Security is clear that it was never intended to make up 100% of your retirement income. They claim it should only account for 30%. Where does the other 70% have to come from? A pension or your personal savings (401k or Roth IRA).</p> <p>The next thing you need to know is that you can claim your social security benefit as early as age 62 or as late as age 70. Your full retirement age is between 66 and 67 based on your year of birth. If you claim your benefit <em>before</em> your full retirement age you’ll be hit with income restrictions. For every $2 you earn over $19,560, social security will withhold $1 of your benefits.</p> <p>As a financial planner, my goal is to help you determine the optimal age to claim benefits. Social security won’t advise you on this (nor should you expect them to). It’s their job to provide you with the information. </p> <h2>Understanding the cost of living adjustment</h2> <p>Social security announces a cost-of-living increase in October of every year for the following calendar year. In 2022, social security benefits increased 5.9% because inflation in 2021 was through the roof. Inflation was up 7%