13 Social Security Strategies to Maximize You and Your Family’s Income

This is Mey here on a breezy Thursday evening getting Wifi from my phone as the internet is down and writing a quick blog post on Social Security Strategies to Maximize Your Retirement Income…

…in the training I was in I learned a few important tips that I want to share with you:

1) Go to http://www.SSA.gov and check that they have your earnings correct, as sometimes they make mistakes…how much time do you have to correct it?  You can go back 3 years only…

2) Registering at http://www.SSA.gov is so that you can obtain information on your Social Security, and does not activate your Social Security benefits.

3) You must work at least 10 years to qualify for Social Security, and the take the 35 highest income years to calculate your benefit…if you worked less than 35 years, then the years that you did not work count as ZERO towards your total.

4) You are entitled to full social security benefits at your retirement age (if you are younger then it’s probably 67, if you are older than it’s probably 66)…

5) If you are a spouse, you are entitled to 1/2 of your spouses social security benefits, and you can start collecting at 62 years old…waiting longer does not change your benefit at all…

6) If you are a spouse, and you also qualify for Social Security, you can start collecting the spousal benefit when you become 62, then wait until the maximum age of 70 years old, and then switch from the Spousal Benefit to your own benefit.  Why do this? Every year you wait to take your Social Security Benefit, the benefit increases…

7) If you are an ex-spouse and were a) Married for 10+ years, b) at least 62 years old and c) not currently married, then you can file to get half of your ex-spouse’s social security…if you get remarried though, the benefit stops…and it does not affect your Ex’s benefit at all and they don’t have to know unless you tell them…

8) If you have children under 18 who are your dependents, then they can claim half of your social security until they reach age 18…

9) If you decide to take your Social Security benefit at 62, then half way through the year you change your mind, then you can do a “do over”, and you can pay the government back and they will reset your benefit as if you hadn’t elected the benefits at all…

10) If you get to age 70, and you are just starting to take your Social Security benefit, however, you realize that you don’t have  much time left to live, you can do a “Do Over” and tell the government that you would like to change your election to start at 62 years old, and then they will pay you in a one time lump sum all of the payments that you would have gotten if you had been receiving them when you turned 62…

11) If you work before full retirement age AND take your Social Security Benefit, after the first $15,000 or so, you will have 50% of your benefit withheld and amortized and paid to you later after your full retirement age…

12) If you work after your full retirement age AND take your Social Security Benefit, after the first $15,000 or so you will have 30% of your benefit withheld and amortized and paid to you later…

13) Taxes – You have to take half of your Social Security Benefit and add up all other income that you make, INCLUDING non-taxable exempt bonds (like municipals), to determine your taxes!

As you can see, there is a lot going on in Social Security and in order to maximize your benefit, it’s recommended