Social Security Planning
Will Social Security be available for me in the long term? Due to political conflicts and extensive media coverage, there is a prevailing belief that Social Security may not be a reliable source of retirement income. Consequently, many couples overlook it in their financial planning. This widespread attitude of skepticism suggests that individuals should not rely on Social Security as a secure form of retirement funding.
However, let’s clarify the facts. For the majority of married couples, Social Security is their primary retirement asset, offering numerous advantages such as annual inflation adjustments, tax benefits, a maximum of 85% taxable income, lifetime payments, and government backing. In reality, it typically constitutes 20% to 50% of middle-income couples’ retirement income, often totaling over $500,000 in lifetime benefits. This is a substantial amount of money for most individuals, making it prudent to maximize this asset if possible.
It is crucial to recognize that deciding when to start receiving Social Security benefits is a significant and impactful decision for your retirement.
In light of the recent departure from conventional pension plans, for numerous members of the Baby Boomer generation, Social Security stands as their sole source of secure, lifetime income. As retirement nears, it is crucial to carefully consider the available options: Is there an immediate need for a consistent monthly income, or is it feasible to postpone collections in order to receive larger monthly disbursements at a later time?
Both opting for early receipt of Social Security benefits and deferring them until the designated full retirement age or beyond present certain advantages and disadvantages. Our team of professionals at Robindale Consultants is equipped to conduct a comprehensive assessment of your alternatives and assist in identifying the most advantageous strategy for optimizing your Social Security benefits.