5 Social Security Facts to Consider

The decisions you make about Social Security can have long lasting consequences that impact your quality of life in retirement.  In order to make smart decisions about Social Security and understand your options, below are five facts to consider:

1. Benefit amount is based upon your full retirement age, years you have worked, and when you begin taking benefits. Although you may retire at a certain age, the Social Security Administration defines “full retirement age” differently.  The age is between 66 and 67 years, depending on your birth year.  If you take Social Security before this age, your benefits are reduced.  If you delay past this age, you increase your benefit amount.
2. Maintaining income sources may be difficult as life expectancies are longer. Your ability to support yourself through retirement depends on thinking through lifespan scenarios.  To ensure you do not run out of money, figure out how long your retirement savings and other resources may last in retirement. 
3. Strategize with your spouse to increase household benefits. Retiring at different ages makes a huge difference in a souse’s benefit amount if a couple is claiming a spousal benefit.
4. Look into other claiming strategies to boost retirement income. There are various benefits available to married couples, same-sex married couples, widow and widowers, divorced spouses or dependent children. Explore options that could help maximize your benefit amount.
5. Plan early.  By looking at your options early on, you can make decisions based on facts.  This in turn can deliver better benefits.

See Tom Halloran, 5 Social Security Facts You Need to Know, U.S. News and World Report, Oct. 28, 2014.