All posts in Social Security

Did you know there are some key things you need to know about receiving your Social Security Benefits? Contact Lifeline Solutions today to learn more.

Should I Take Social Security Early?

Does it make sense for a person to choose to retire prior to full retirement date? That depends on a number of factors.

Reduced Benefits

People who qualify for social security retirement benefits can begin receiving those benefits in the month after they reach age 62, or any month after that, even though they won’t reach full retirement age for a few more years. Choosing to take an early retirement benefit means the amount of the benefit will be permanently reduced.

Early retirement reduces the PIA by 5/9 of 1% for every month, up to 36 months early. That works out to 6.67% per year. If early retirement benefits start more than 36 months early, each additional month will reduce the benefit by 5/12 of 1%. That works out to 5% per year.

Here’s an example. Suppose a prospective retiree’s normal retirement age is 66. He decides to take early retirement at age 62. Say also that the normal benefit works out to be $1,600 per month at age 66. The benefit percentage will be reduced for each month of the four years that the benefit is starting early. The reduction is 20% (36 months times 5/9 of 1%) plus 5% (12 months times 5/12 of 1%). The monthly benefit will be $1,200—a reduction of 25% of the normal retirement benefit.

So does it make sense to take early retirement benefits from a total payout perspective? It depends on life expectancy.

Consider the early retirement benefit example just discussed. The full retirement benefit at age 66 is $1,600/month. The early retirement benefit at age 62 is $1,200/month. Let’s also assume that life expectancy for this retiree is age 87—25 years after the early retirement benefit begins.

If early retirement benefits begin at age 66, the total retirement benefits paid will be $360,000 (300 months times $1,200/month). If the retiree waits to age 66, the total amount of benefits paid will be $403,200 (252 months times $1,600/month). The total payout is substantially higher if the retiree waits until full retirement age.

Think About It is written by Stephan R. Leimberg, JD, CLU and co-authored by Linas Sudzius June 2009

Social Security

Did you know there are some key things you should know about receiving your Social Security Benefits? Is it smart to wait a few years before you request your benefits? Can you make a lot more money by waiting?

Can you really make an additional 300 or 400 dollars a month? YES, it’s possible! If you are about to receive your payments or if you are receiving them right now, you need to talk to our trusted advisors. You can increase your payment amount by 8% a year if you have a great strategy. You need every dollar you can get. You have worked hard to earn this payout and there are just a few simple things that you should know about right now. We look forward to helping you with this new information. What are you waiting for? Get informed NOW!

Did you know there are some key things you should know about receiving your Social Security Benefits?Is it smart to wait a few years before you request your benefits? Can you make a lot more money by waiting? Can you really make an additional 300 or 400 dollars a month? YES, it’s possible!

If you are about to receive your payments or if you are receiving them right now, you need to talk to our trusted advisers. You can increase your payment amount by 8% a year if you have a great strategy.You need every dollar you can get. You have worked hard to earn this payout and there are just a few simple things that you should know about right now. We look forward to helping you with this new information. What are you waiting for? Get informed NOW!

How to Maximize Social Security Benefit

Having a financial plan for the future is the only sure way to do the things you want in life. Your financial plan can help you send your children to college, start your own business, or enjoy retirement. However, we understand that it is not always easy finding the money to fund that financial plan. Here is a potential solution.

Did you know that wages above $90,000*are exempt from Social Security tax?

For example, if you are earning $150,000, $60,000 of this annual income is above the Social Security wage base. So somewhere around mid-July, the 6.2% that you are accustomed to paying will stop. By year-end, this amounts to $3,720 of “found money.” And, since the rate for self-employed individuals is 12.4%, you could have twice as much!

How some annual incomes are affected

Pre-Tax Available Funds

Annual Income

Income Above Social Security Wage Base

Individual

$125,000

$35,000

$2,170

$150,000

$60,000

$3,720

$200,000

$110,000

$6,820