Personal Finance Topic #271 – Social Security Secrets You Need to Know Now

Filed in Gather Money Essential by on July 30, 2012 0 Comments

Reprint of 34 Social Security Secrets You Need to Know Now from Making Sense by Paul Solman

I have followed Prof. Kotlikoff of Boston University, a noted economist, for many years, and he is one of the most credible economists in financial planning and retirement planning arena.  I hope you find his advice thorough and practical.

34 Social Security Secrets You Need to Know Now

Here are three suggestions from his list:

  1. If you are already collecting your retirement benefit and are at or over full retirement age, you can tell Social Security you want to suspend further benefits and then ask them to restart your benefits at a later date, say age 70.
  2. If you aren’t now collecting and wait until 70 to collect your retirement benefit, your retirement benefit starting at 70 can be as much as 76 percent higher than your age-62 retirement benefit, adjusted for inflation.
  3. But if you are married or divorced, waiting to collect your retirement benefit may be the wrong move. If you are the low-earning spouse, it may be better to take your retirement benefit starting at age 62 and then switch to the spousal benefit you can collect on your current or ex-spouse’s account starting at your full retirement age.

Read 31 other secrets in his article.

Take heed on his income tax advice #17 and #33

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