Retiring Soon? 3 Social Security Moves to Make Right Now

Don’t wait too long to determine your Social Security strategy.

Retirement is an exciting new chapter in life but requires loads of planning and preparation. Around 90% of adults age 65 and older receive Social Security, according to the most recent data from the Social Security Administration, and determining how your benefits will fit into your retirement plan is crucial.

You don’t have to wait until retirement to start figuring out your Social Security strategy, though. It’s often better to start planning before you retire — and there are three important steps you can take right now.

1. Check your estimated benefit amount

If you’re eligible for retirement benefits, you can see your estimated benefit amount well before you begin claiming. To do so, you’ll need to check your statements — which you can do online through your mySocialSecurity account.

From there, you can see an estimate of your benefit amount based on your real earnings throughout your career. Keep in mind, though, that if your income changes substantially between now and retirement, it could affect your future benefit amount.

When you know how much to expect from Social Security, it’s easier to tell how much you’ll be able to rely on your benefits. If you find that you’ll be receiving less than you expect, it’s better to know that now while you still have time to save.

2. Decide the age at which you want to begin claiming

Your benefit amount, based on your career earnings, is the amount you’ll receive if you start claiming at your full retirement age (FRA). Your FRA will depend on your birth year, but it’s age 67 for anyone born in 1960 or later.

Social Security full retirement age chart.

IMAGE SOURCE: THE MOTLEY FOOL.

If you begin claiming before your FRA (as early as age 62), your benefits will be permanently reduced by up to 30%. By delaying past your FRA (up to age 70), you’ll receive your full benefit amount plus a bonus of at least 24% per month.

There’s not necessarily a right or wrong time to take Social Security, as it will depend on your unique situation, preferences, and financial needs. Just be sure you know how your claiming age will affect your checks before you file, as your benefit amount is generally locked in for life once you begin claiming.

3. Make sure you know all the benefits you’re entitled to

Retirement benefits are the most common type of Social Security. However, if you’re married, divorced, or widowed, you could also be entitled to spousal, divorce, or survivors benefits, respectively.

  • Spousal benefits: If you’re currently married to someone who’s entitled to retirement or disability benefits, you could qualify for spousal benefits. The most you can receive is 50% of the amount your spouse is entitled to at their FRA.
  • Divorce benefits: You may be eligible for divorce benefits if you’re not currently married and your previous marriage lasted for at least 10 years. Like with spousal benefits, the maximum divorce benefit amount is 50% of your ex-spouse’s payment at their FRA.
  • Survivors benefits: If your spouse has passed away, you could receive their full benefit amount in survivors benefits. But this type of benefit is also sometimes available to other family members, such as divorced spouses, parents, and children.

In some cases, you may be able to receive these types of Social Security in addition to retirement benefits based on your own work record. By taking advantage of all the different benefits you’re entitled to, you could potentially boost your payments by hundreds of dollars per month.

Social Security can go a long way in retirement, so it’s wise to start planning for it now. With the right strategy, you can maximize your monthly income and enjoy your senior years more comfortably.