Social Security decision-making isn’t as easy as it was for our parents and grandparents. When they became eligible, they simply went downtown (remember those places?) and simply filed.
Not so easy today. Social Security decision-making has become more complex and, unfortunately, because of that, there are few ‘simple’ answers.
Social Security claiming decisions aren’t as simple as they may appear. The decisions you make for yourself can impact your spouse, your future taxes, and even the bite Medicare premiums take from your Social Security benefits.
Many people believe they should take Social Security early in order to keep from drawing down IRA assets, believing that the longer they can grow the IRA tax-deferred, the better off they’ll be.
Are they wrong? Maybe. Maybe not. Different people are in different circumstances.
Too many seniors still take the Social Security claiming decision too lightly – it’s a mistake that can cost them tens, if not hundreds, of thousands of dollars of retirement income during their lifetimes. And, often, the decision is made based on false bias or assumptions rather than a solid planning strategy.
Mistakes can be costly – and may be permanent!
The annual Social Security trustees’ report is to advise Congress on the financial condition of the Social Security system over the next 75 years. If they project that 100% of benefits will be paid, it’s said to be in balance and no action will be needed. If they project a shortfall, they call on Congress to fix the problem by either raising taxes, cutting benefits, or some combination of the two.
Have you checked your Social Security statement on the SSA’s website? You should; there’s a lot of good information there!
If you’re a baby boomer, you may want to begin your Social Security planning early – and it’s especially true when it comes to claiming Social Security! Today it’s different from when your parents filed their claims: they just went down to the Social Security office and put in the paperwork! Today, it’s far more complicated.
Social Security claiming mistakes can result in more than just lost income; you might end-up paying thousands in extra taxes later!
When most people buy things, they see only the price tag; but that doesn’t reveal the REAL cost, especially when it comes to luxury items. The real cost of luxury can be more than they realize.
It’s an election year, and while the headline topics dwell on the border, January 6th, the age of the candidates, and all the rest, few are talking about the “3rd rail” of politics: social security.
You can expect a few politicians will come up with innovative approaches (they know will never reach the floor for a vote), but it does make for good campaign sound bites. It can be confusing.
