Next Avenue: 3 simple rules for getting the most out of Social Security

by | Oct 18, 2022 | Stock Market

This article is reprinted by permission from NextAvenue.org. Social Security is the cornerstone of retirement income; in fact, a third of retirees get 90% of their retirement income from Social Security. But if you’re confused about how its benefits are calculated and when you should start claiming them, you’re in good company. A new Bank of America survey found that just 38% of employees say they understand Social Security benefits.

Basically, there are three things you need to know:
It pays to delay when you start claiming Social Security benefits.

Married couples should coordinate Social Security claims.

It’s not a good idea to ask Social Security staffers to help you claim benefits.

Advice from an expert In the new episode of the “Friends Talk Money” podcast, my co-hosts and I turned to Laurence Kotlikoff, a Boston University economics professor and president of Economic Security Planning, for advice on the three essentials. In addition to teaching and running a financial planning firm, Kotlikoff is a co-author of “Get What’s Yours: The Secrets to Maxing Out Your Social Security” and the creator of software that seeks to maximize Social Security benefits. 1. It pays to delay when you start claiming Social Security benefits. You’re allowed to begin taking Social Security benefits at age 62, and most Social Security beneficiaries do. But there’s a huge benefit in delaying claiming as long as you can — perhaps until age 70, which is the latest you’re allowed to begin receiving the benefits. That’s because Social Security increases the size of your benefits by up to 8% a year for …

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