By Mike Gibbons, RICP®
Are you planning on Social Security making up a significant portion of your retirement income? If so, you’re in the same boat as over 67 million Americans over the age of 65. With a program that impacts the lives and finances of so many, you would think people would be more prepared to claim their benefits—unfortunately, that’s not the case. Roughly half of Americans younger than 50 are not confident about the program, and 51% don’t have a clear sense of how much they will receive in SS income.
Navigating the Social Security process can be daunting, and lacking a comprehensive understanding of the system and your benefits could have severe financial consequences. If you’ve ever felt confused as you attempt to understand Social Security, or struggle to steer through the system on your own, a Social Security review may be precisely what you need.
Why You Need a Social Security Strategy
There are countless ways to claim your Social Security benefits and the Social Security Handbook has 2,728 separate rules governing your benefits. As you can see, there is no one-size-fits-all claiming strategy for Social Security. There are several factors that play a role in the amount of benefits you receive and the ideal date for you to start claiming those benefits, including your health status, life expectancy, need for income, whether or not you plan to continue working, and how concerned you are about running out of money.
Another good reason to request and review your Social Security benefits statement is that there could be errors that need correction. The statement lists your earnings for each year, and it does happen sometimes that income is inaccurately reported. Errors or missing earnings from your record will require proof of earnings in the form of a W-2 form, tax return, wage stub, and possibly other documentation. Any errors are correctable by contacting the Social Security Administration offices.
Assess Your Current Financial Situation
While having a strategy for when to begin Social Security benefits is important, it is also critical to analyze your Social Security benefits in conjunction with all of your retirement assets. Incorporating your benefits into an overall retirement income plan may make a world of difference in the amount of income available to you in retirement.
Creating a long-term plan requires time and careful attention to details. Regardless of whether you choose to work with a professional or not, you’ll need to start by having a complete, up-to-date understanding of your total financial picture—including the amount and composition of the resources (pension, 401(k), IRA, brokerage accounts, part-time work, home equity, etc.) you can draw upon in retirement.
This exercise not only reveals the safe withdrawal rate from your different accounts throughout your retirement but also helps determine whether the amount is sufficient to sustain your desired lifestyle and potentially allow you to delay filing for Social Security.
What to Expect
In our Social Security review meeting, we’ll help you navigate these topics as well as discuss a few questions, including:
How do I decide when to start collecting? Is it worth it to wait to collect my benefits until I reach full retirement age (FRA)?
Should I delay claiming past FRA to get a larger payment?
How are my benefits calculated?
How should I plan to maximize my total lifetime benefits?
Should my spouse and I coordinate to maximize our total benefits?
Can I work while collecting Social Security? If so, what are the limitations?
At Gibbons Financial Group, our goal is to assist you in making wise decisions to support your lifestyle while preserving and growing your assets so you can live your best life—now and later.
If you have questions and want to make sure you receive every penny that’s rightfully yours, we’d love to offer you a Social Security review meeting to help you navigate and most effectively use your benefits before and during your retirement. Schedule your complimentary meeting by calling 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.