5 Secrets to Maximize Your Social Security Experience

Dec. 15, 2013 - PRLog -- Number 1 Demographics Have Changed

The Social Seecurity Act was passed in 1935 and was designed with good intentions and probably good modivations but some things have changed since 1935. Demographics!

For one we hear all the time that people are living longer and that probably the number one fear among the elderly is not dying it's not dying (outliving their assets). When Social Security was put in force in 1937 the average life expectancy was 60, now it's nearly 80.

Not only that Social Secuirty Supplement was just that, a supplement. It was never designed to be such a majority foundation for retirees income making up about 40% of it.

Work to retiree rate is much higherr, probably in part to the increased life expectancy. When Social Security was enacted there was over 150 workers to cover each retiree. Wanna know how many there are to cover each retiree now? Only about 3.

This next part will shock you, it shocked me completely. The poverty rate for seniors was over 50%, now it's well under 10%.

Number 2 What Age Should I Tap In

Age 62 is the earlieast a person can tap in at a reduced benefit. The benefit increases until you reach the full benefit at age 65, 66, or 67 depending on your birth date.

Here's an often bit of bad information that gets passed around, you do not have to be retired to start receiving your benefit.

Taking early benefits will probably become less and less attractive in the years to come as the penalty increases and further reduces the benefit. It will; become more important for those approaching retirement to have a strategy to deferr their Social Security but still getting guaranteed supplemental income while they wat for full benefit.

Another item to consider is the deferral benefit past full retirement benefit age. Social Security will increase your benefit payment by a good percentage while you wait beyond your fully attained age. Developing income strategies beyond age 66 or 67 will become even more valuable for those retiring right now and in the future.

Number 3 Will Social Security Automatically Turn On

No. Social Security needs to be applied for. You can apply for your benefits three months before you are eligible. So if you want your benefit early the earliest you can apply is three months before the month your turn 62.

You will have to provide proof of your age along with your application. The funny thing is what they'll accept as proof. Of course they will accept a copy of your drivers license, birth certificate , and items of proof like that, but the funny thing is they will accept a baptism certificate. I found that odd.

Now if someone is receiving Disability Social Security you don't need to submit an application, the benefits will just end and the retirement benefits will kick on automatically.

Number 4 Will My Wealth Hurt Me and My Benefit

In general it won't. Your assets and net worth will not make you ineligible. If you have a large retirement income you can still receive your benefit depending on when you elected to receive your benefit. If you are receiving large income from rental properties, or dividends you should not have your Social Security Benefit reduced. If you are earning income as a consultant or something like that you could see your benefit reduced.

Number 5 How Much Additional Income Can I Earn Without Getting Hurt
Yes, maybe. If you're under the full retirement age for all of 2014 and you earn over $15,480. Now I don't know why they pick that dollar amount but they do. This can hurt people if they are not aware of these little traps.

Someone could have worked through the year and applied for their benefit and had it reduced and had no way to know or bee prepare. That's why I'm writing this article, to raise questions and create awareness.

The rules are a little different if you reach full retirement age in 2014. If you make over $41,400 you could receive a reduced benefit but the difference is only the income earned prior to reaching that full age count up and against you.

The amount of the reduction depends on the amount earned above the limit but remember income after reaching the full retirement age and election do not count against you.

In Conclusion
As you can see Social Security is confusing and has lots of moving parts. If you or someone you know is attempting to make decisions around Social Security tell them to reach out to us so they aren't sucked up by the Social Security Whirling Tornado of Confusion. We specialize in helping people understand the complicated.


Matt Golab was recruited to write a chapter in Tom Hopkins upcoming book, Victory scheduled to be released later this year. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years.  The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.

He is often featured in Senior Market Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers around the country passing on the principals for a successful retirement. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans. Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle,  Newsweek, TheSmartRetiree, Burlington County Times and soon will be appearing nationwide on ABC, CBS, Fox, and NBC as well as USA Today.

Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market". Contact information for Matt is available at his website,

http://www.aaronmatthewsfinancial.com/

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