Understanding the interplay between Social Security benefits and retirement planning is helpful when planning your future. To create a retirement plan, it’s helpful to evaluate how Social Security integrates with other sources of income, including pensions, retirement accounts (like a 401(k) or IRA), and personal savings. If retirement is on the horizon, then it may be a good time to connect. Below, we explore key questions to help guide your planning process.
When Do I Plan to Stop Working?
The age at which you retire can influence the Social Security benefits you receive. Your full Social Security retirement age depends on the year you were born. Delaying benefits until age 70 increases your monthly payment. However, waiting may not be the right choice for everyone. Reviewing how your work timeline aligns with your retirement goals may help you make the best decision for your situation. Learn more about how the age at which you choose to start collecting Social Security can affect your monthly benefits here.
Do I Need This Extra Income?
Determining whether to claim Social Security early often depends on your financial needs and resources. If you have sufficient savings, retirement accounts, or other income streams, delaying Social Security may provide long-term financial advantages. Assessing your anticipated expenses, savings, and other income sources can help you determine the right time to begin collecting benefits.
In “Debunking 6 Social Security retirement myths,” Ameriprise emphasizes the importance of evaluating your financial situation to determine the optimal time to begin collecting Social Security benefits. Read more here.
Will My Benefits Be Taxed?
Depending on your total income, Social Security benefits may be subject to taxes. Understanding how your income, including withdrawals from retirement accounts, could impact your benefits and help prepare for potential tax obligations.
How Long Will I Live?
Life expectancy plays a key role in retirement planning, particularly when deciding when to claim Social Security. While no one can predict the future, considering factors such as family history, health, and lifestyle can provide helpful context for making decisions.
How Do Spousal Benefits Impact My Plan?
If you are married, coordinating Social Security benefits with your spouse may help maximize your household income. For example, spousal and survivor benefits can offer additional financial support, so it may be beneficial to explore how timing decisions align with both of your needs.
How can StackStone Wealth help with Social Security benefits?
Deciding when to collect Social Security benefits is an important decision. The right age varies based on personal factors like health, life expectancy, and financial needs. Our teams in Dubuque, IA, Lake Geneva, WI, Marquette, MI, and Rockford, IL can help you explore these factors. With regular meetings, our team can assist in estimating your retirement expenses and income.
Every individual’s situation is unique, and there is no one-size-fits-all approach. Taking the time to review your options and consult with our team can help you plan for this important chapter of life.
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