Haddon Township NJ 08108 609-332-4918 JSilvagni@MauiWealthSolutions.com .
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Social Security Maximization
Social Security maximization refers to the strategic approach of optimizing one's Social Security benefits by carefully considering factors such as claiming age, spousal benefits, and other relevant regulations. The goal is to make informed decisions that can enhance the total benefits received over an individual's lifetime. By understanding the rules and utilizing various strategies, individuals can potentially increase their Social Security income and make the most of this important retirement program.
Remember, your circumstances are unique, and it's crucial to tailor the Social Security claiming strategy to your specific needs and goals. Following a family member or friends way of doing it may not work the best for you because you do not live the same life. Working with a knowledgeable professional can help ensure you make an informed decisions and optimize your Social Security benefits that fit your needs.
Social Security Basics:
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Claiming Age: The earliest age at which an individual can claim Social Security retirement benefits is 62 years old (there are some exceptions). However, the longer an individual waits to claim benefits, the higher their monthly benefit amount will be. Full retirement age is between 66 and 67, depending on the year of birth, and if an individual waits until their full retirement age, they will receive 100% of their Social Security benefit.
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Spousal Benefits: Spouses may be eligible for Social Security spousal benefits based on their spouse's work history. Spouses may be eligible to receive up to 50% of their spouse's Social Security benefit, provided they are at least age 62 and their spouse has filed for benefits.
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Survivor Benefits: If a spouse or dependent child is eligible for survivor benefits, they can receive up to 100% of the deceased individual's Social Security benefit.
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Earnings Limitations: If an individual claims Social Security benefits before their full retirement age and continues to work, their benefits may be reduced if they earn more than a certain amount per year. In 2023, the earnings limit is $21,240 per year. Once an individual reaches their full retirement age, there is no longer an earnings limit.
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Taxes: Social Security benefits may be subject to federal income tax if an individual's provisional income (which is calculated as their adjusted gross income ,AGI, plus any tax-exempt interest and half of their Social Security benefits) exceeds a certain threshold. In 2023, the threshold is $25,000 - $34,000 for individuals and $32,000 - $44,000 for married couples filing jointly to have 50% Social Security taxed. Anything AGI+ above $34,000 for individuals or $44,000 for couples filing jointly will have 85% of their social security taxed.
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It's important to note that these are just some of the basic guidelines for Social Security claiming, and each individual's situation may be unique. Working with a qualified financial advisor or Social Security specialist to determine the best Social Security claiming strategy for your specific needs and goals is key to maximizing the benefit.