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Social Security Planning

Not Your Grandparents Retirement!

Are you aware of the several hundred combinations of social security maximization claiming strategies available? Do you understand spousal benefits? What is the impact of taking payments at 62, 66/67 or 70?

Let’s start with two Key Terms: PIA and FRA

Your Primary Insurance Amount, or PIA, is the amount of monthly income you will receive at your normal retirement age, also known as your Full Retirement Age (FRA). Depending upon when you were born, your FRA will range from age 65 to age 67. People born between 1943 and 1954 have an FRA of 66.

Your PIA, which is based upon your lifetime earnings, may be reduced or increased, depending upon when you decide to claim retirement benefits. You may claim benefits before reaching your FRA, as early as age 62, and you may delay claiming until after your FRA, as late as age 70.

Claiming after you've reached your FRA offers benefits. Your monthly check will be increased by 8% for each year that you delay, up to age 70. For example, if your FRA is 66, and you delay four years until you're 70, your monthly check will be 32% higher than at age 66, and 75% higher than at age 62. Over time, one might receive significantly more dollars depending upon when benefits are claimed. This higher amount will also affect your spousal benefits if you predecease your spouse.

Contrary to most people’s belief, the social security office is not trained or permitted to provide claiming advice. They can answer most questions and process your filing paperwork. You may benefit from seeking the advice of a financial advisor that specializes in retirement income planning, one who can help incorporate your Social Security claiming options into an overall retirement income plan. That’s what we do at BACK9 Retirement Solutions. We utilize market leading specialized software to run numerous scenarios in order to determine the optimal strategy for your personal goals and objectives. We then incorporate those results into your overall retirement income plan.