Think carefully before filing to claim social security benefits. When and how you claim, your marital status, health and status of your dependents can all affect your benefits.
To prepare to meet with an advisor, create a free “My Social Security” account at SSA.gov. There you can download a statement on estimated benefits and other information you will need.
Also, consider these important questions when preparing to meet with an advisor:
- When are you planning to retire?
- What will your earnings look like if you work past 62?
- What other sources of income will you have in retirement?
- Based on your health and family history, how long do you expect to live?
- Are you married or divorced? Dependents?
Social Security benefits grow in time. Although you may be eligible benefits at age 62, they will be greatly reduced compared to the amount you will receive if you wait until age 66 (born prior to 1954) or age 67 (born 1960 or later). The maximum social security payout comes at age 70.
It is also important to consider when you will begin withdrawals from your IRA and 401k plans. At 59 1/2 years of age, you withdrawals are penalty free. Of course, you will still need to consider federal tax impacts.