What Financial Planners Wish You Knew About Social Security

Only about 1 in 8 adults know when they’ll be eligible for full retirement benefits through Social Security, according to the Nationwide Retirement Institute 2023 Social Security Survey. And compared to 2014, fewer people age 50 and up now know whether they may be eligible for Social Security benefits based on an ex-spouse’s record or if Social Security may offer benefits for their spouse or children .

The threshold isn’t terribly high: If you’re not full retirement age in 2024, you’ll lose $1 in Social Security benefits for every $2 you earn above $22,320. If you will reach full retirement age this year, you’ll lose $1 in benefits for every $3 you earn above $59,520, until the month you turn full retirement age. From that month forward, you’re in the clear.

Social Security is taxedAlas, Social Security benefits aren’t tax-free — and you have to ask Social Security to withhold taxes for you. When one spouse dies, a Social Security check endsIf your spouse dies and their Social Security check was larger than yours, survivors benefits mean you can start collecting their higher payment. But you don’t get to keep both checks.

Business owners may be hurting their benefit amountEntrepreneurs sometimes try to claim as little earned income as possible to pay as little in income tax as they can. But Social Security bases your benefits on your income over your best 35 earning years, and the lower your income in those years, the smaller your Social Security benefit will be in retirement.

The best claiming age is different for everyoneAlthough starting Social Security at age 70 nets you the highest benefit, it’s not the only answer to the when-to-claim question. Like a lot of planning, it depends on your circumstances. “We had a client where no one in her family had lived longer than age 76,” said John Scherer, a CFP in Middleton, Wisconsin, in an email. “She wasn’t super interested in making sure her income was robust into her nineties.

Source: News Formal (newsformal.com)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

In fundraising pitch, Iditarod planners say financial woes could jeopardize epic sled dog raceThe message comes at a time when major Iditarod sponsors have dropped out, and inflation has increased the cost of participation.
Source: AKpublicnews - 🏆 387. / 55 Read more »

In fundraising pitch, Iditarod planners say financial woes could jeopardize epic sled dog raceSeveral major race sponsors have ended their support for the race in the last several years.
Source: KTOOpubmedia - 🏆 439. / 53 Read more »

Make-A-Wish seeks 1M new 'wish-makers' to help ill childrenThe nonprofit organization's new initiative continues its mission to grant wishes for children with serious illnesses. Here’s how the program works.
Source: FOX10Phoenix - 🏆 83. / 68 Read more »

Make-A-Wish Arizona Grants Wish for Teen with Cystic FibrosisDayson Judd's dream of becoming a vet comes true after Make-A-Wish Arizona fulfills his wish. Diagnosed with Cystic Fibrosis, Judd's health improved after starting a trial with Trikafta medication.
Source: kgun9 - 🏆 584. / 51 Read more »

City planners gear up for World Cup 2026 matches in North TexasThe fanfare of Dallas being selected as a host city for the 2026 World Cup has simmered. Now, the logistical marathon has begun.
Source: FOX4 - 🏆 289. / 63 Read more »

Salt Lake planners unveil what future Ballpark's southwest corner could look likeCity planners recently unveiled a draft version of the plan that tries to merge both the old and new ways the Ballpark's southwest corner is being used, so neither are canceled out.
Source: KSLcom - 🏆 549. / 51 Read more »