Deciding when and how to claim Social Security benefits can be one of the most critical financial decisions you’ll ever make. That’s why the LPL Financial Advisors at Elements Wealth Management are here with valued advice to help you be savvy with Social Security. Our Advisors are also available for a complimentary one-on-one meeting to discuss your circumstances.
Making the right choices around Social Security can potentially boost lifetime retirement income for individuals and even more for married couples. It is a once-in-a-lifetime decision with huge financial consequences and an essential building block to planning a confident retirement. Here are some of the common questions we hear:
How much income will I receive in retirement?
Social Security is a major source of retirement income for 62% of current retirees, yet it is only designed to supplement other retirement income.1 There are many other important decisions to make when you leave the workforce that will play a significant role in the income during your retirement years. The amount you receive from Social Security will be determined by these factors:
- If you start collecting benefits early – you'll typically get less
- If you collect benefits late – you'll typically get more
- If you work after you retire
- If other family members receive benefits based on your earnings record
- If you collect certain other government benefits
- If the cost of living rises
Your maximum benefit may be payable if you retire at full retirement age, your widow or widower is full retirement age, or you are disabled. The amount you will receive is based on your Social Security earnings record. Your earnings are averaged according to a formula and then indexed. The resulting figure is called your primary insurance amount (PIA). Once your PIA has been calculated, all your benefits (and those of your family members who are dependent upon your Social Security record) will be based on this figure. Your PIA is the maximum benefit that you could receive once you become eligible.
According to Zach Schroer, LPL Financial Advisor at Elements Wealth Management, “The Social Security Administration is the expert on Social Security and the creators of this complex system; however, they are not financial advisors able to provide personalized advice on your individual circumstances.”
How do I maximize Social Security?
To get the most out of your benefits, you must make some decisions. According to Jack Evans, LPL Financial Advisor at Elements Wealth Management, “Deciding when to retire and begin receiving benefits is important because the age at which you elect to begin receiving benefits can greatly affect your overall lifetime income from Social Security."
You'll also need to decide whether you want to work after you begin receiving benefits, and if so, determine how your wages will affect your benefit. Finally, if you are a business owner or a self-employed individual, you need to consider how you can reduce your Social Security payroll taxes.
How do I learn more about my situation?
According to Kelly Fennelly, LPL Financial Advisor at Elements Wealth Management, “There are very few rules that apply to everyone when it comes to Social Security, so each case must be analyzed individually with the individual's or couple's financial goals in mind.” Making the right choice takes on added importance as a result of increased longevity, disappearing pensions, increasing healthcare costs, historically low interest rates, erratic stock market returns, and other major retirement risks facing retirees.
It’s never too early to start thinking about your aspirations for the future and how Social Security will play a part in them. Our team is available to discuss your unique situation during a complimentary consultation.
Six Secrets Behind Social Security
Attend Our Upcoming Workshop
We know Social Security can be a complicated matter — at any age. During this virtual panel discussion, representatives of Elements Wealth Management will dive into six key considerations when planning for Social Security. You’ll hear from these LPL Financial Advisors:
- Jack Evans
- Kelly Fennelly
- Zach Schroer
Register today and mark your calendar for this upcoming event!
Tuesday, April 26, 2022
12:00 pm - 12:30 pm Eastern