Qualified retirees may receive a larger payment by delaying their benefits
until they reach an older age. This decision requires careful analysis and must take into account a retirees general health,
their retirement income needs and the calculations involved in delaying the receipt of Social Security benefits versus taking payment
upon immediately benefit eligiblity. Many eligible recipients may be better served by beginning Social Security payments
immediately upon eligibility rather than waiting for the higher maximum benefit. Do the calculations with a qualified advisor
to determine which approach may be best for you.
If you have worked and paid Social Security taxes during your lifetime you may qualify for either your own
Social Secutiry benefits or qualify as the spouse of a recipient. Benefits may be available as a spouse in the event you are
over the age of 62 or have dependent children under the age of 16, or a disabled child over the age of 16. In addition to
those requirement you must also not be eligible to receive your own Social Security benefits in an amount greater than half
the amount of your spouses.
If you are entitled to your own pension you will receive either your benefit
if it is equal or higher than your spouse's, or the difference between yours and your spouse's benefit in addition to your
own.
If you are a widow or widower and are age 60 or older or age 50
if you are disabled, you may collect on your former spouse's Social Security. When you reach age 62, you may decide to
switch to your own Social Security benefit in the event it is larger.
While it may seem unreasonable that Social Security income is taxable since it is a benefit that is received
on income already taxed, it may still be subject to income taxes if your total taxable income exceeds a certain limit.
If your modified adjusted gross income plus one-half of your Social Security benefit exceeds $25,000 if you are single or
$32,000 as a married couple, your Social Security benefits may be taxable. If you are married and living with your spouse
(think marriage penalty), but file separately your benefit may be taxable from the first dollar received. Also note that the
"modified" adjusted gross income includes your adjusted gross income PLUS any tax exempt bond interest. The amount you will
be taxed depends upon your filing status and you total income plus Social Security benefit.
If you are married and file jointly and your combined income plus benefit exceeds $44,000, or you are single
and it exceeds $32,000, you may be taxed up to 85% of your benefit.
We will continue to review changes regarding Social Security benefits and eligibility and how they
may affect your retirement planning and investment approach. But always consult with your advisor and if you have any questions
be sure and visit the Social Security Administration website and you can download the Social Security Handbook at www.socialsecurity.gov.
