When it comes to maximizing Social Security benefits, many – sadly including so-called financial advisors – are under the wrong notion that there are only two basic options: (1) collecting at early retirement or (2) waiting until full retirement age (FRA). As this complimentary special report shows, whether you’re married, divorced, or widowed, you have several options and strategies that could get you more money than you might imagine.
How is that possible when you’re not even aware of all your options in the first place? Or even worse, when your advisor is one of the many who doesn’t know what he or she doesn’t know in this regard?
Deb’s retirement advisor is a trusted family friend she’s known and worked with for years. She’s looking forward to retiring in eight months when she turns 66. Her advisor has determined that between Deb’s pension and Social Security, she’ll be OK, so she really didn’t see any need to seek a second opinion. However, her coworker strongly encourages her to do so – after all, it’s complimentary! So she reluctantly makes an appointment to see yours truly.
During our meeting, I discover that, although currently single, Deb was married for nearly 35 years – and that’s the game changer! Wondering why? Her financial advisor was completely wrong in thinking she could only – and therefore must – apply for Social Security benefits based on her “own” work record. The thing is, she also qualifies for benefits based on her ex-husband’s work record. Yes, and it’s completely legal!
In this particular instance, such a move is even better, because her ex-husband earned so much more money that it turned out her monthly benefit would be almost $300 more than if she based her claim on her own record.
And it gets better still! By going this route – and getting more income now – Deb also has the opportunity to earn “delayed retirement credits,” which increases her “own” benefit amount by 8% a year for the next four years, until she reaches age 70. As the math turns out, at that time, she will switch from her current claim to her “own” much larger maximum benefit. Yes, that’s right: she gets more today, and even much more at age 70 and beyond.
By the way, all of this is completely legal, totally acceptable, and will not affect her ex-spouse and his new wife’s benefits in any way. Not too shabby, right?
To be clear, I don’t expect every financial advisor to become a Social Security expert. However,given the role that Social Security benefits play in retirement, is it too much to ask that every so-called retirement consultant have some basic knowledge of all the possible options?
Of course, everyone’s situation is different. But are you sure you’re aware of ALL of your options when it comes to maximizing Social Security payouts, not just for yourself, but for your immediate family as well? You can start by downloading a complimentary copy of our special report.