How Are Your Social Security Benefits Calculated?

October 9, 2014

 

We all think we know the basics about Social Security. But, do we really know how different the benefits can be?

The standard retirement age is between 65 and 67 depending on your birthday. Your monthly income, also called your PIA, is determined by your highest 40 quarters of wages. You can start taking your benefits as early as age 62, but your monthly income will be reduced by 25%. Or you can delay until age 70 and your monthly income will be 32% higher.

Your strategy needs to be based upon a number of factors, like how much retirement income you need, other source of income, income taxes and your general health condition. Other factors also weigh in, like survivor needs, divorce, dependent children and available liquid assets.

Proper planning requires attention to all of these details. We call this process “Social Security Maximization”. Give us a call today at (866) 609-3232 to plan on Maximizing Your Social Security.