FRESNO, Calif. (KFSN) — Social Security is a benefit you likely pay into, whether you’re aware of it or not. This government program provides a fixed income for retirees, helping many maintain financial stability in their later years.
“You pay into Social Security through payroll tax,” explained AJ Flores, Lead Financial Advisor at Portfolio Advisors. “If you’ve ever checked your paystub, you’ll see a small section labeled ‘Social Security.’”
Depending on your situation, you can file to receive Social Security benefits as early as age 62. However, most people’s full retirement age is 67.
“You can make a case to delay Social Security in order to secure a higher monthly benefit,” Flores said. “Waiting guarantees a higher benefit, but it also delays when you can start enjoying that income.”
There are several factors to consider when deciding the best time to claim benefits, including your health status, family longevity, other sources of retirement income, and whether you have an immediate need for the funds.
Some people worry about the long-term stability of Social Security. “As of right now, Social Security is projected to be fully funded through at least 2033,” Flores noted. “After that point, assuming no changes are made, there may be some adjustments. Without any legislative action, Social Security will still be able to pay out at least 77% of everyone’s benefits based on payroll taxes from the workforce.”
Flores suggests getting ahead of the game by regularly checking your earnings history to ensure it is accurate. You can do this by creating a login on the Social Security Administration’s official website. This is also helpful if you want to coordinate benefits with your spouse.
“Knowing how you’re eligible and understanding how Social Security fits into your overall retirement plan is very important,” Flores emphasized.
You can log in at any age to check your Social Security account online. The website provides current benefit estimates and allows you to calculate how much you will receive at different claiming ages. There is also a helpful tutorial to guide you through the process.
Taking the time to review your Social Security information now can help you make informed decisions about your financial future.
https://abc30.com/post/watching-wallet-understanding-social-security-benefits/18067155/
