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www.theconnectionsnj.com
Spotlight on
“
SeniorS”
Maximizing Your Social Security Bene6ts Requires a Strategy:
Key Points to Know
By Chris Schi5er, CPA and Ray Hawkins, CFP®
AEPGWealth Strategies
When am I eligible for Social Security?
Early eligibility begins at age 62. However, if you apply at 62, your monthly beneAt is
reduced which can have a tremendous impact over your lifetime.
You will receive full retirement beneAts at the designated Full Retirement Age which is
currently of 66 and is scheduled to increase to 67 based on the year you were born:
Year of Birth
Full Retirement Age
• 1943-54
66
• 1955
66
and 2 months
• 1956
66
and 4 months
• 1957
66
and 6 months
• 1958
66
and 8 months
• 1959
66
and 10 months
• 1960
and later
67
However, if you delay the receipt of your beneAts past age 66, you will earn an additional
8%
credit to your beneAt for each year you delay receiving your beneAts up until age 70.
In addition, beneAts are increased annually for a Cost of Living Adjustment (COLA). The
COLA magniAes the impact of receiving beneAts early or delaying beneAts due to com-
pounding.
How much will I receive?
Your Social Security BeneAt is based on your earnings history. The Social Security Adminis-
tration provides a statement with an estimate of your monthly beneAt. You can also access
your Social Security Statement online at:
http://www.socialsecurity.gov/myaccount/
.
Your
monthly beneAt is based on your highest 35 years of earnings. The closer you are to retire-
ment, the more accurate the estimate is. Once you apply for Social Security, your monthly
beneAt is “locked in.”
Can my Spouse receive bene6ts?
In addition to his or her own beneAts, as an alternative, your spouse may be eligible to claim
beneAts based on your earnings history and may also be eligible for a survivor beneAt based
on your work record. As such, when you apply for your beneAts also impacts the beneAts
your spouse will receive.
Do I have to pay Income Taxes on My Social Security Bene6ts?
If you have other income (such as wages, self-employment, interest, dividends and other
taxable income that must be reported on your tax return) in addition to your beneAts, your
Social Security beneAts may be taxed. A general guideline:
•
If you 6le a federal tax return as an "individual"
and your
combined income
is
•
between $25,000 and $34,000, up to 50% of your beneAts may be taxable.
•
greater than $34,000, up to 85% of your beneAts may be taxable.
•
If you 6le a joint return
,
and you and your spouse have a
combined income
that is
•
between $32,000 and $44,000, up to 50% of your beneAts may be taxable.
•
greater than $44,000, up to 85% of your beneAts may be taxable.
So when exactly should you apply for Social Security?
To maximize your Social Security bene6ts, strategies based on a number of factors can be
utilized, including:
•
If you have other sources of income or funds that you can tap into before Social Security
•
You and your spouse’s health and family longevity
•
Whether you plan on continuing to work
•
Your marital status and spousal beneAts
Should I apply for Medicare when I apply for Social Security?
Applying for Medicare should not coincide with applying for Social Security. If you plan to
delay receiving beneAts because you are working, you should sign up for Medicare three
months before reaching age 65, regardless of when you reach full retirement age. Otherwise,
your Medicare medical insurance, as well as prescription drug coverage, could be delayed,
and you could be charged higher premiums.
The Social Security Administration has a wealth of information available online including
calculators to help you with your decision (
http://www.socialsecurity.gov
)
or you can
consult with a Anancial planner to help guide you to an optimal solution based on your
own circumstances.
Cordially Invites You to an Important Seminar on
Maximizing Your Social Security Benefits
This seminar will address strategies for
maximizing benefits and the following questions:
•
Will Social Security be enough to live on in retirement?
•
Will Social Security be there when I’m ready to retire?
•
How can I maximize my bene6ts?
•
How much can I expect to receive?
•
When should I apply for Social Security?
Food and Beverages will be served
Please join us from 6:00 pm to 7:30 pm on any of the
following evenings:
Wednesday May 15th
Wednesday June 12th
Wednesday June 26th
Wednesday July 17th
AEPG Wealth Strategies
25
Independence Boulevard, Suite 102
Warren, NJ 07059
Conveniently located right off of Route 78 (Exit 33)
To RSVP or to schedule a one-on-one review
Contact Suzanne Morella
908.757.5600
or
smorella@aepg.com
About AEPGWealth Strategies:®
For over 30 years, the clients of AEPGWealth Strategies have beneAtted from personalized,
comprehensive wealth management and Anancial advisory services. Our services to indi-
viduals, physicians, business owners and corporations include: Financial Planning, Invest-
ment Management, Individual and Group Insurance, 401(k) and Retirement Plan Solutions.
AEPG is a SEC registered investment adviser. If you are a physician, please contact us to
learn about our specialized services for doctors.
www.aepg.com
Consistently Good Advice in a
Constantly Changing World
®
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