One of the most important things to consider as you’re planning for retirement is Social Security and where it fits into your finances. Knowing how to protect your assets before and when you’re in retirement makes a huge difference in keeping your lifestyle and quality of life.
Here are a few tips:
Evaluate your income and benefits
You should be considering your estimated Social Security benefits and any other sources of income you will have during retirement. That includes any annuities, IRAs, pensions or employer plans. Use a retirement income calculator to determine what you have, what you need, and how you will be affected.
Aim to max out your benefits
Weigh the advantages of waiting as long as you can to collect. The goal is to make sure your payments from Social Security are as high as possible. Check what other benefits you qualify for.
It’s very important to know and understand how earnings affect your benefits. You can continue to work and receive Social Security retirement benefits, but it may be affected. In fact, in the year you reach your full retirement age, benefits are reduced $1 for every $3 you earn over a certain limit.
Your money may also be affected by the assets you have. Speaking with a financial planner can help you decipher what you need, what you need to do, and how you can properly plan for your future.
While retirement may be some time away, getting your financial house in order now can help you determine what’s important. If you have children or other family members that will still need your support, all the financial resources that come in during retirement will be affected.
For more information on Social Security planning and getting the best outcome from your finances, contact a financial planner today.