The new book, Get What's Yours, The Secrets to Maximizing Out Your Social Security helps you decide when and how to collect retiree, spousal, survivor, divorcee, parent, and child benefits to achieve the highest lifetime benefits. It is a must read as following the suggestions in this book could earn you as much as an additional $50,000 in benefits.
Some of the most important information this book provides which is not generally known includes:
- It’s best to wait until age 70 to start collecting retirement benefits. About half of Americans choose to collect at 62 because they have no other savings, but the payout is 76 percent higher at 70 than it is at 62. Less than 2 percent wait until 70. Waiting is a good idea for low income retirees as well, because the benefits are a higher percentage of earned income.
- A good strategy for married couples is for one spouse to file for the retirement benefit at 62 and then immediately suspend it. The other spouse files for a spousal benefit and can collect half of the others retirement benefit through age 70. Spousal benefits also apply to any couple married for at least 10 years, including divorcees.
- Depending on circumstances, it might be better to file at 62, suspend at 66, and then refile at 70 if dependents need money more quickly. The goal is to maximize your longer-term payout so you don’t run out of money.
- Is it fair to try and game the system like this? Yes. More knowledge creates more fairness. There are hundreds of thousands of social security rules, and it’s not fair if only those who have the resources to understand them get maximum benefits.
Social Security recipients will receive 1.7 percent bigger payments in 2015, due to the annual cost-of-living adjustment. Most workers will continue to pay 6.2 percent of their earnings into the Social Security system, but the maximum taxable earnings amount will increase in 2015 year from $117,000 in 2014 to $118,500 in 2015.
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