Be Financially Independent After Retirement Through Social Security Advantages

By Author: Arond Devit
Total Articles: 14
Comment this article

Our encounters with the debt relief options and the debt management plans have been accentuated by our debt situations and we surely are grateful to these programs but while dealing with retirement and the sense of financial dilemma after that particular time can easily be equated with the troubles of debt until the retiree have mad full-fledged and full-proof financial plans to secure and strengthen his/her future. In this case one should be aware of the relation between retirement age and the social security benefits associated with it. Over the course of a retirement Social Security benefits will usually average out at the same payment levels whether they are taken before, at or after retirement age. Choosing when to use this benefit, however, may dictate how much is paid. For some, working after retirement age and/or taking Social Security later in life could give higher payments. Knowing the right time to claim social security benefits is essential to plan ahead of time; Individuals can choose when to receive Social Security benefits at any point from the age of 62 up to the age ...
... of 70. When they are used may determine the actual payments they are given. Essentially, waiting till full retirement age gives 100% of the benefit that is due. Retiring early will see this percentage decrease; retiring later could see it increase. However, this doesn’t mean that those that take Social Security later will be paid more in total over their life than those that choose to use it earlier. According to an online table stating social security and retirement age benefits, individuals born between 1943-54 have a full retirement age of 66 with the payment options as follows:

Taking benefits aged 62 will give 75%.

Taking benefits aged 66 will give 100%.

Taking benefits aged 70 will give 132%.

Therefore, those that take the early option may be paid less for a longer time; those that wait may be paid more for potentially less time. Some prefer to wait as long as possible to boost their retirement income with a higher monthly payment. Others prefer to start their payments earlier even though they may be paid less. Delaying taking Social Security benefits is one way to get a higher monthly payment. Working in retirement may also have a positive impact on how much will be paid. Individuals can also work and receive Social Security benefits at the same time. This could also help increase the payments ultimately made. This system is based on highest earning years so those that work in retirement may be able to use their earnings to replace years when they may not have been paid as much. This may qualify them for higher benefits. It is important to note that anyone working under full retirement age that has opted to receive benefits early may have their payments reduced depending on how much they earn. Thus in order to assure profitable and productive flow of income and financial stability one has to take care of the retirement policies along with working prospects after retirement and availing for the social security benefits at a later time.

Aronddevit is an investment advisor providing an array of ideas about the investment strategies. She has an expertise in writing about the best debt management programs, credit card and debt management services.