66 or Older?

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It is funny how this business goes – totally cyclical.  People think about their Social Security and retirement at weird times.  Since we handle clients all over the U.S. it has been interesting to watch.  Examples are after hurricanes we see clients come from the Florida and Georgia area.  Off football weekends in Mississippi, folks get out their retirement papers. Tax season becomes overload!!  Anyway, we are thankful for the lulls but really want to encourage people to take a serious look at this stuff at least two years prior to considering retirement. It is worth the effort!

What happens when people linger?  Don’t they just increase their benefit?  Yes, they do increase their benefit, but if 66 years old or older, probably losing income stream as well.  The reason for this is the auxiliary benefits available to their spouses.  If triggered at the RIGHT time, could mean an increase that should not be missed. 

Two clients this week – one called the month he and his wife were eligible for Restricted Spousal benefits and it is going to work out for them.  Had he called in November it would not have been the same story. Another couple were both waiting until age 70 to maximize their earnings – both 68 years of age and a professional gave them our number.  They are out about $15,000 that cannot be recovered, but the good news is they can recover more than $20,000 in retroactive benefits. They had no idea that they were eligible for these benefits, but we are thankful for their professional who had their best interests at heart.  

Most middle-income couples, through life expectancy, look at over a million dollars in their Social Security nest egg.  This is more than most people have saved toward retirement.  So, to many folks, Social Security is considered a critical lifeline in their retirement plan.  All of us realize, after the Crash of 2008, that no assets – not our homes, not our bonds and certainly not our stocks – are safe from life-altering declines.  Figuring out what to apply for and when to do it is not simple.  You have been paying payroll taxes your entire life, make sure you maximize your benefits.

Pillars LLC is located in the Corinth, MS area but services clients in all 50 states.  Roy and Diane are both National Social Security Advisors and Roy is a former CPA of over 42 years.  You may contact them at dthompson@pillarsllc.com, on their website at www.pillarsllc.com or call at 601-954-0699.  KNOW before you GO!!