Norm Haug RSSA Staff
Social Security plays a critical role in retirement income planning, but navigating the complex rules and strategies can be overwhelming and you may not realize rules that can affect you. A Registered Social Security Analyst (RSSA) specializes in helping individuals and couples maximize their Social Security benefits by providing personalized, expert guidance. Whether you’re just starting to consider your options or approaching retirement age, consulting with an RSSA can be an invaluable step toward financial security.
But who exactly should consult with an RSSA? Below are the top reasons and scenarios in which an analysis from an RSSA can make a significant difference.
1. Those Seeking to Maximize Lifetime Benefits
Deciding when to file for Social Security is one of the most important retirement decisions you’ll make. Filing early can reduce your monthly payments, while delaying past Full Retirement Age (FRA) can increase them significantly through Delayed Retirement Credits (DRCs). An RSSA can help you determine the optimal filing age based on your unique situation, maximizing your lifetime benefits and ensuring you don’t leave money on the table.
2. People with Pensions or Other Sources of Income
If you have a pension from government or military service, it could reduce or even eliminate your Social Security benefits due to rules like the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). An RSSA can analyze how your pension, other retirement income, and Social Security work together, ensuring you get the maximum benefit without any surprises.
3. Couples with an Age Difference
If there’s a significant age difference between spouses, the timing of Social Security claims can be particularly complex. An RSSA can develop a strategy that coordinates the claiming of benefits for both spouses, maximizing the higher earner’s benefit while ensuring the lower earner doesn’t miss out on spousal or survivor benefits.
4. Those Eligible for Spousal or Survivor Benefits
If you are, or were, married, you may be eligible for spousal or survivor benefits based on your spouse’s or ex-spouse’s earnings. These benefits can sometimes provide more than your own retirement benefits. An RSSA can help you decide whether to claim your own benefits or switch to spousal or survivor benefits at the right time to optimize your household income.
5. People Planning to Continue Working in Retirement
If you plan to keep working while receiving Social Security, your benefits may be reduced or eliminated if you claim before FRA due to the earnings test. An RSSA can help you understand the impact of continued work on your benefits and devise a strategy to minimize reductions or delays.
6. Individuals Concerned About Longevity
Life expectancy plays a critical role in deciding when to file for Social Security. Filing early reduces your monthly benefits, while waiting until 70 can increase them substantially. An RSSA can model different longevity scenarios, helping you make an informed decision that balances the risk of outliving your resources with maximizing lifetime income.
7. Those Facing Taxation of Social Security Benefits
Did you know that up to 85% of your Social Security benefits can be subject to federal income taxes? The more income you have in retirement, the more likely this becomes. Did you know you can file retroactively for 6 months after you reach full retirement age, deferring benefit income into the following year? An RSSA can guide you through withholding decisions and more.
8. Retirees with Children or Disabled Dependents
If you have dependent children under 18 (or under 19 and still in high school), or if you care for a disabled adult child, they may be eligible for child benefits based on the Social Security record of a parent. An RSSA can ensure you’re claiming all possible benefits and help navigate the family benefit cap to maximize household income.
9. Divorcees and Remarrying
If you’ve been divorced after at least 10 years of marriage, you may be eligible for spousal or survivor benefits based on your ex-spouse’s earnings record, even if your ex has remarried. An RSSA can help you determine the best benefit and how to coordinate remarriage plans with your Social Security strategy.
10. Those Transitioning from Disability Benefits
If you’re currently receiving Social Security Disability Insurance (SSDI), your benefits will automatically convert to retirement benefits once you reach FRA. An RSSA can help you plan for this transition and explore the option of suspending benefits and letting them grow at 8% each year.
11. Self-Employed Individuals or Business Owners
For self-employed individuals and business owners, Social Security contributions are made through self-employment taxes. These earnings can greatly affect your Social Security benefit calculations. An RSSA can help balance future earnings and future benefits as you transitioning into retirement.
12. People with Foreign Earnings or Pensions
If you’ve worked abroad or are receiving a foreign pension, the rules around Totalization Agreements may affect your Social Security eligibility and benefit amounts. An RSSA can help coordinate your foreign and domestic earnings to avoid penalties, reductions in benefits or understand how pensions may be combined to qualify.
13. Widows or Widowers Eligible for Survivor Benefits
If your spouse has passed away, you may be eligible for survivor benefits. An RSSA can help you decide when to claim these benefits, especially if you want to delay claiming your own retirement benefit until age 70. Coordinating survivor benefits with your own retirement income can lead to a higher lifetime payout.
14. Multiple Marriages
If you’ve been married multiple times, especially if each marriage lasted more than 10 years if divorced or 9 months if deceased, you may be eligible to claim spousal or survivor benefits based on any ex-spouse’s earnings record. A detailed Social Security analysis can help you determine which ex-spouse’s record provides the highest benefit and when to file for each.
Filing for Social Security is one of the most important decisions you make and your life and getting the most out of it requires careful planning. Whether you’re single, married, divorced, or have a unique family situation, a Registered Social Security Analyst (RSSA) can offer expert advice tailored to your circumstances. By consulting with an RSSA, you can ensure you’re making the best decisions for your financial future, taking advantage of all the benefits available to you.
If you fit into any of the categories above, consider reaching out to an RSSA for a personalized Social Security benefits analysis. With professional guidance, you can make informed decisions that help secure a more comfortable and prosperous retirement.
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