Social Security is a program American workers have collectively paid into throughout their lifetime. It’s designed to provide individuals ages 62 and up a monthly payment for the rest of their lives.
As financial advisors, we are often asked the question, “When should I start collecting my Social Security?” While our team would love to provide you with a general answer, this decision is different for everyone.
Becoming familiar with Social Security benefits
Social Security payments don’t automatically begin once you hit your age of eligibility. It’s an intentional choice a person must make that influences their future finances.
“Social Security is part of the retirement plan for almost every American worker,” according to the Social Security Administration. “It provides replacement income for qualified retirees and their families.”
One becomes eligible to collect Social Security as early as age 62. However, they will not receive their full benefit unless they start collecting at 66 or 67 (dependent on birth year).
If someone were to begin collecting at the age of 68 or older, they would be eligible to collect more than the full benefit. Learn more about how this is determined here.
Social Security and the fiduciary duty
As a team of financial advisors committed to our fiduciary duty, we take time to evaluate every aspect of a client’s financial background through our financial planning process. This includes the decision to collect Social Security.
For some, the best option might be to start collecting the moment they are eligible. For others, it may be better to wait it out and collect the extra monthly income later on. This decision becomes more complex when you add in spouses and previous marriages as well. This is all dependent on the full scope of a person’s financial background. The ultimate goal is for clients to get the most out of what they’ve paid into.
It’s important to note that the decisions made regarding social security are dependent on when a person chooses to retire and their estimated lifespan. Detailed calculations help us to make informed decisions for when to begin collecting.
Fostering relationships is a pillar of Copperline Wealth Management and Planning’s structure. It helps us make sure clients have a well-rounded plan that fits their needs.
If you’re nearing retirement and have asked the question, “When should I start collecting my Social Security?” we’d be happy to sit down with you to discuss your options.
Learn more about Copperline Wealth Management and Planning
Your financial future is important and something that should be prioritized. As a people-oriented business, it’s Copperline’s commitment to providing wholesome financial advising strategies for every season.
For more resources about financial planning, check out our other articles on our website and follow us on Facebook. If you’re interested in learning more about financial advising services in Cody, Wyoming, or wherever you’re located, we encourage you to reach out to our team.
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Want to learn more about a fiduciary’s commitment to their client? Check out the recent article, “The Importance of Having a Financial Advisor Who is a Fiduciary.”
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
