Over your working life, you have paid into Social Security along the way. Now it is time to start thinking about your options and how to benefit the most from what’s available to you.
First off, Social Security is an actuarial calculation based on life expectancy. So, if you would let us know when you are going to pass away, we can come up with the perfect claiming strategy for you! All kidding aside, Social Security claiming is complex. Since you do not know how long you are going to live, you have to make an informed decision with the information you have today that will affect the next 25-30 years of your life.
The longer you wait to start your benefit, the higher your benefit will be. In most cases, the longer you live, the better off you will be if you delay your benefit. It sounds simple, but then all kinds of uncertainty arise. What if you pass away at age 75? What if you live until 105? What if there are big changes to Social Security? What if? What if? What if?
Here at Foster Group, we like to think of Social Security as longevity insurance. For most of our clients the fear of running out of money at age 82 or 83 is relatively small. However, as you increase the age of life expectancy to 90 or 95, that fear increases. In most cases, you can reduce those fears by delaying your claiming to increase your Social Security benefit.
What claiming strategy is best for me/us?
Our job as your financial advisor is to give you as much information as possible and run multiple scenarios to help you with your decision-making process. Here at Foster Group, we have a Social Security tool we use to look at the claiming decision in isolation. Then we put that claiming strategy back into your financial plan to get an overall picture of how Social Security fits into the rest of your financial plan.. Your situation is uniquely yours, and guess what! Everyone is different. Consult with your financial advisor and arm yourself with the essential information needed before heading down to the Social Security office to claim your benefit.
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