There’s a lot of misinformation out there about Social Security. People receive information from a variety of different sources and often don’t know which information applies to their specific scenario. That’s why it’s critical to use a Social Security Optimizer to help you maximize your retirement benefits. It should take into account all applicable Social Security laws, you and your spouse or ex-spouse’s birthdays, and life expectancies. To optimize your custom filing strategy, consider three key variables:
First, consider your Primary Insurance Amount, also called your PIAThis is calculated from your top 35 years of working at a job that paid into Social Security.
Second, consider any non-covered pension amount from working at a job that did not pay into Social Security. Having a non-covered pension amount will reduce the amount of retirement benefits that you receive from the Social Security Administration.
And third, consider Delayed Retirement Credits, also called DRC’s. Postponing collection of benefits can earn you an additional 8% in DRC’s every year that you delay filing until age 70.
When choosing a filing strategy, we’ll work with you to help bridge the gap in income that may result from a delay in filing. It's not only about when and how to file, it's about all the layers of your retirement income working together to get you a tax-smart retirement paycheck.