Most Asked Social Security Questions
It’s no question that Social Security plays a crucial role in retirement planning, helping to provide a stable income stream for millions of recipients.
In this week’s Better Money Boston with WCVB Channel 5, David Shapiro answers some of the most frequently asked questions we get about how and when to claim benefits.
Should I Withdraw from My 401(k) Before Taking Social Security?
Depending on your unique financial situation, we generally recommend taking Social Security benefits first to preserve your retirement savings. This approach helps ensure that your personal assets remain available for your loved ones or for any unexpected costs.
With a customized retirement income plan, you can determine the ideal time to claim Social Security as well as strategically time your 401(k) withdrawals to minimize your tax burden.
What Happens If I Pass Away Shortly After Taking Benefits?
If you pass away soon after taking Social Security, you can be assured that your benefits won’t be lost. Depending on your circumstances, they may be transferred to your spouse or, in some cases, your children. Understanding survivor benefits is key to ensuring your loved ones receive the proper support.
Will My Benefits Increase If I Wait to Claim?
Yes, the longer you delay collecting benefits, the higher your monthly payment will be. You can start claiming at age 62 a reduced amount, but if you wait until full retirement age, you’ll receive your full benefit. If you delay even further, your benefit will continue to grow and reach the maximum payout at age 70. Since claiming Social Security is a permanent decision, it’s important to carefully consider your options before making the right choice.
My Spouse Recently Passed, When Should I Take Benefits?
If your spouse has passed away, you may be eligible to receive survivor benefits. You can begin collecting your deceased spouse’s benefit at full retirement age and then switch to your own benefit at age 70, if it’s higher. Choosing the right time to claim can significantly impact your financial future, so consulting a financial professional is a smart step to ensure you receive the highest possible payout.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
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Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
