Yahoo Finance recently shared a valuable article that highlights some important considerations when collecting Social Security. Here are the top six things to keep in mind according to the experts:
- Your Work Status and Income – If you intend to work after claiming your benefits, pay attention. According to the Social Security Administration (SSA), your payout will be reduced by $1 for every $2 you earn above an annual limit, which is $22,320 for 2024.
- The Size of Your Benefit – The more you earn (within the Social Security wage base limit,) the more you will collect.
- Taxation – Consider all sources of income. If your total income is above $25,000 as an individual or $32,000 as a joint filer, 50-to-85 percent of your Social Security income will become taxable.
- Your Retirement Budget – Your income in retirement is likely quite different and you need to make sure that your costs and spending align with your new budget.
- Your Other Sources of Retirement Income – While Social Security is vital for American retirees, it often does not paint the full picture. Assess all of your income in retirement to see where you truly stand.
- Your (Potential) Spousal Benefit – Depending on your situation, if you are married, the spousal benefit could exceed your individual benefit.
For more information about retirement benefits, check out the full Yahoo Finance article here.
When it comes to Social Security, American seniors need help. Benefits do not go far enough to support basic needs, and something needs to change. We believe that the Elder Relief Act is the change retirees need. Learn more here.