Serving the needs of New York business owners, individuals, and families, Sandra Capek emphasizes a judicious approach to investment planning. Sandra Capek strives to ensure that her clients are well informed about the financial decisions that will affect their daily lives before and after retirement, including choices regarding Social Security.
One Social Security benefit that many overlook is the option of using the retroactive benefit provision. The amount received each month through Social Security depends on when the money is claimed. Those who start their Social Security at age 66 receive a full benefit check, while those who start at 62 receive 75 percent of the full amount. For those who wait until age 70, the amount is 32 percent larger than the baseline.
One additional option is to access retroactive benefits, dating back to the full retirement age of 66. A simple example involves waiting a year after eligibility to begin Social Security. If the monthly amount received is $1,500, you can get a lump sum payment of $18,000 on your 67th birthday and continue to receive $1,500 each month thereafter. Alternatively, delayed retirement credits can be applied, which raise the monthly take home by $120 each month.
Either option can be an good choice when current assets are enough to support a comfortable lifestyle and a lump sum payment at a specific time or extra monthly Social Security payments could be strategically important in the future.
Since government rules and regulations can change, it's important to consult a financial advisor as well as your tax advisor to ensure you are up to date with the current rules regarding these benefits to help you make the right choice for you and your family.
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