Tips for Claiming Your Social Security
Toni:
I work for local Oil Co and have lost my job. I’ve filed for unemployment and it will not even begin to pay my monthly bills.
I’ve just turned 62 and I’ve been told I can begin receiving a Social Security check. Is this a good option? I’ve been told that I could be making a mistake. Social Security does not seem to want to help with my different options. They say they can’t get involved or give personal advice. Social Security seems so generic in their answers. I need a little help with this complex decision that will affect me for the rest of my life.
~ Thanks, Pam from Pearland, TX
Ms. Pam:
At the Confused about Medicare workshops, I am often asked, “When is the right time to apply for my Social Security benefits since I have been laid off from my job?” There really is not a correct age, but everyone should make an informed decision, not an emotional one! You may be leaving thousands of dollars with Social Security because you were not aware of alternative choices for claiming your Social Security check.
Below are a few mistakes to avoid when filing for your Social Security check.
- Planning for the wrong retirement age: Your Social Security retirement age varies based on when you were born. Your FRA (full retirement age), which could be 66 or maybe 67, is when you receive 100% of benefits, 62 and you receive 75%; but later than 66 and receive 8% for each years that you have waited until age 70.
- Not thinking about your spouse: Being married there are 2 checks you need to be concerned about, yours and also your spouse’s benefit check. You and your spouse can bring in extra income while maximizing both you and your spouse’s Social Security benefits. One can delay their benefits while the other spouse could take a spousal benefit to bring in some income while the couple waits for the higher earner’s benefit to “grow”.
- Not thinking of filing and suspending: Using filing and suspending at FRA allows the beneficiary some “insurance” when making the decision to delay.
- Not claiming a widow’s benefit: You can claim a widow’s benefit and delay your own to grow by 8% to age 70.
- Not staying married at least 10 years: Make sure you are married at least 10 years to the date to make a claim on the ex-spouse’s Social Security. If your ex-spouse is dead, you can qualify for his/hers benefits.
Social Security benefits are the bedrock for many American retirement plans. You can boost your financial security in retirement by maximizing the inflation-adjusted lifetime income stream of an annuity. The old days are gone and Baby Boomers are purchasing hybrid annuities with Living Benefits to help beat the cost of long term care needs. Take your time when receiving your Social Security check to be sure you are maximizing your needs.
Toni King is the author of the new Medicare Survival Guide®, which is a simple guide that puts Medicare in people terms and is on sale here. To email questions or to schedule a “Confused about Social Security and Medicare Workshop,” go to Ask Toni … or call 832/519-TONI (8664)
