In May we blogged about your retirement income stream, specifically the potential benefits of delaying your Social Security if you are able to do so. Did you also know that your Social Security is permanently reduced if you claim your benefits early? Remember, it is important to maximize any source of income during retirement. This includes Social Security, as well as other potential income streams like pensions and annuities.
For those who are willing to wait, or who can work a little longer, there are additional strategies you can consider in order to “maximize” the benefits you receive from Social Security. To help determine this, there are three key factors to consider: 1) how long you are planning to work, 2) your marital status and age differences, and 3) your health and family medical history. By sorting through these key points and working with a professional, you should be able to determine if strategies such as “file & suspend”, “switch strategies”, or “filing a restricted application” can benefit you by increasing the amount you receive over your lifetime. The benefits can be significant.