Signature-Wealth-Social-Media-Myths

Social Security seems simple. But this retirement benefit is in fact quite nuanced, with many variables to consider–including when to start collecting, how to maximize your benefit, and what to do if you choose to go back to work. 

Here, we shine some light on common Social Security misconceptions to help get the most from your hard-earned benefits.

The Top 7 Social Security Myths

 

Myth #1: SOCIAL SECURITY WON’T BE AROUND

Social Security is replenished by Americans, interest on US bonds, and taxes on some retiree benefits. Should the existing surplus be depleted, future retirees may be paid a portion of the benefits promised, but not zero.

 

Myth #2: SOCIAL SECURITY IS ALL YOU NEED

While Social Security benefits are adjusted for cost of living increases, they’re intended to supplement, not replace, retirement savings. That’s why it’s important to maximize your retirement savings for as long as possible. 

 

Myth #3: ALWAYS FILE AS EARLY AS POSSIBLE

Filing for your Social Security benefits before your full retirement age (FRA) will begin benefits sooner but reduce their amount, which may not be optimal. Higher-earning spouses often delay benefits to ensure a higher payout for their widow or widower, who would be eligible for 100% of their benefit. 

 

Myth #4: ALWAYS FILE AS LATE AS POSSIBLE

Waiting to file for your Social Security benefits past your full retirement age (FRA) often makes the most sense financially. But, some conditions warrant filing early, particularly if you need the extra income, have health concerns or want the payments during your younger years. 

 

Myth #5: NO WORK EXPERIENCE, NO BENEFITS

Those who haven’t worked for 40 quarters can receive half of what a spouse or ex-spouse would receive (if you were married over 10 years and haven’t remarried). Surviving spouses and exes may also be eligible for full benefits on their spouse’s record. 

 

Myth #6:  NEVER WORK AFTER FILING

If you file for Social Security Benefits early and continue to work, your benefits will be reduced based on your earnings. But those benefits are simply delayed; at your full retirement age (FRA), you’ll receive increased payments to make up the difference.

 

Myth #7: RELY SOLELY ON ADVICE FROM FRIENDS AND FAMILY

Advice from non-professionals may not maximize Social Security benefits. Contact your financial advisor at Signature Wealth Strategies to address your specific circumstances, and develop a plan to get the most from your Social Security benefits.

Do you want to get the most out of your hard-earned Social Security benefits? Contact us today and we’ll show you how. 

 

 

 

 

 

 

 

Sources
https://www.raymondjames.com/roundtableadvisors/blog/resources/2019/04/04/debunking-social-security-myths-infographic
https://www.raymondjames.com/wealth-management/what-are-you-planning-for/planning-for-retirement
Opinions expressed in the article are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. 
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