Single

Singles: Collecting maximum benefits comes down to good timing

It’s no secret that Social Security benefits account for a major portion of most retirees’ incomes. Naturally, you want to maximize the benefits you’re entitled to —and the way to do that is to know when the optimal time is to start collecting. Coordinating benefits with other sources of retirement income you might have can potentially earn you thousands of extra dollars in after-tax income if done right. An Advisor with the RSSA® credential can help you make all the right decisions — at the right time — to help ensure receive all you’re entitled to.

When and how should I start collecting?

There are many factors that should be taken into account to decide when and how to claim Social Security benefits.

• As a rule of thumb, you can start taking Social Security at reduced benefits at age 62, rather than waiting until your full retirement age (FRA).
• FRA ranges from 65 to 67, depending on when you were born.
• If you delay collecting until you reach FRA, the amount of your monthly benefit will increase until you reach age 70.

How large a benefit can I expect?

For someone at full retirement age, the maximum amount is $3,113, and for someone aged 62, the maximum amount is $2,324. The absolute Social Security max benefit that an individual can receive per month in 2021 is $3,895, and to get it you must file at age 70.

What percentage of Social Security Is taxable?

If you file as an individual, your Social Security is not taxable only if your total income for the year is below $25,000. Half of it is taxable if your income is between $25,000 and $34,000. If your income is higher than that, up to 85% of your benefits may be taxable.

The takeaway:

Singles can benefit from smart planning on when to take their money. Consider all your income sources when making a decision on Social Security. Generally, the longer you delay taking Social Security, the higher your monthly benefits may be, and the gains from waiting can be significant. RSSA® advisors have the education and training provided by NARSSA (the National Association of Registered Social Security Analysts), to help you collect all of the benefits you may be entitled to.