Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
It is essential to recognize the role social security benefits play in your future income, and how you can maximize your benefits by making informed financial decisions.
First, by working longer, you could maximize the amount of income you are eligible for. Social Security is based on a credit system. The longer you work, the more credits you earn. Next, determine when you will start collecting retirement benefits. If you can, plan for early retirement and began receiving payments as early as 62 or wait until full retirement age, or you can plan a delayed retirement and start receiving benefits at age 70. Also, coordinate spousal benefits. For married couples, each spouse is entitled to the higher of their own social security benefit or up to 50% of their spouse’s full retirement age benefit. Lastly, protect your spouse. When you die, your spouse is entitled to receive up to 100% of your benefit.
Following these tips could bring you greater financial security in your retirement.