They could make your workforce exit a lot smoother.
If you’re planning to retire in 2024, you may be counting down the weeks or even the days until that milestone hits. Retirement can be a very exciting period of life. And if you happen to have a job that’s stressful in nature, you may be excited to finally leave it behind.
But it’s important to get a handle on your plans for Social Security before your retirement becomes official. If you’re planning to exit the workforce in 2024, make these important Social Security moves today.
1. Get an estimate of your monthly benefit
There’s a good chance Social Security will serve as an important source of retirement income for you. Ideally, it won’t be your only source, and you’ll have savings to fall back on, as well.
But it’s probably fair to say that the monthly benefits you get will play a big role in your retirement finances. So it’s important to know what specific benefit you’re in line for.
If you have no idea how much monthly income to expect from Social Security, create an account on the Social Security Administration’s website and access your most recent earnings statement there. It should give you an estimate of your monthly benefit so you have an idea of what to expect.
Keep in mind, though, that if you’re planning to retire and claim Social Security before having reached full retirement age, your monthly benefit will be reduced. But it’s important to have a number in mind so you can begin to map out a retirement budget.
2. Have a conversation with your spouse about when to file
Just because you’re planning to retire in 2024 doesn’t mean you have to claim Social Security in 2024. In fact, you may not even be old enough to file for benefits if you won’t be 62 at that point.
But assuming a Social Security claim is possible at the time of your retirement, based on your age, it’s important to sit down with your spouse and figure out when to sign up. Filing for Social Security before reaching full retirement age will result in a lower monthly benefit for life, while delaying your filing past that point will boost your monthly benefit permanently.
That being said, if your spouse is planning to file a Social Security claim on your earnings record (known as a spousal benefit), they won’t be allowed to do so until you’ve filed for Social Security yourself. That’s something you’ll need to reconcile.
Similarly, your spouse may be entitled to a monthly Social Security benefit based on their own earnings record, and it could make sense for one of you (but not both) to delay your filing. So you’ll need to talk through your options and get on the same page.
If your retirement is right around the corner, you may be getting increasingly excited by the day. But do yourself a favor and tackle these key Social Security moves before wrapping up your career. Doing so could spare you a world of financial stress and help you kick off retirement in a more confident manner.
