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Social Security income (SSI) provides retirees with a key source of financial stability during their retirement years. However, SSI was never intended to be a sole source of income, and is calculated to replace only a percentage of what you earned while you were working. In fact, your SSI could be as low as 27% of your earned income; most retirees need about 70% of their pre-retirement income to live comfortably.
While SSI should never be your sole source of income during retirement, it can still be a cornerstone of your financial stability, and it’s important that you get as much out of your Social Security benefits as you can. Retirement Advisors of Arkansas can help you get the maximum benefit by carefully planning for the best time to begin taking your SSI distributions, and understanding how they impact your overall financial picture.
Currently, individuals qualify to receive Social Security benefits at the age of 62. However, we strongly recommend that you wait until you reach “full retirement age” at 67 before you begin taking Social Security payments. Why?
While it may seem like you’ll get more from Social Security by taking your benefits as soon as possible, this is generally not true. If you start receiving benefits at age 62, your benefits will be reduced by 0.5% for each month remaining until your full retirement age. Conversely, if you wait a few extra years after reaching full retirement age, then start taking your Social Security benefits, those benefits will be increased by a certain percentage, depending on the year you were born. Spouse benefits also increase when you delay taking your Social Security.
While we generally recommend delaying your SSI at least until you reach full retirement age, we understand that everybody’s circumstances are different. That’s why we take the time to sit down with you and get to know your needs, goals, and lifestyle, so we can help you create a customized retirement plan that fits those needs. We’ll help you to figure out how to get the most out of your SSI and effectively manage your retirement income to minimize taxes.
Contact Retirement Advisors of Arkansas today to get the guidance, support, and education you need for a comfortable and confident retirement.