Below are four important questions to ask yourself before collecting on social security:
How long will you live? Yes, this question feels slightly morbid, and obviously there is no way to truly answer that, and we all hope for long lives. Current statistics show the average 65 year old will live until age 85. The earlier you begin taking social security, the lower the amount will be for the rest of your life.
Do you plan to continue earning an income while collecting on social security? If you collect before full retirement age and you continue working, your benefits will be reduced during these years. In 2020, if you’re between age 62 and 65 and earning an incoming over $18,240, one dollar for every two will be withheld from your Social Security benefits.
When does your spouse plan to collect Social Security? When it comes to this, timing does matter, especially for a two income household. If the lower earning spouse collects Social Security first and the higher earning spouse collects later, it could result in a higher lifetime benefit for the household.
And finally, how much benefit are you actually going to receive? In order to have a plan, you need to have the most up-to-date information about your benefits. Visit SSA.gov to view your estimated benefits. Remember that Social Security calculates your monthly benefits by using a formula based on your 35 highest earning years.
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