Approaching the sunset years brings with it the anticipation of well-deserved rest and relaxation. Yet, it also comes with crucial financial considerations, especially regarding Social Security benefits. Whether you’re pondering retirement or are already basking in its glow, understanding how to maximize your Social Security benefits can significantly enhance your golden years.
Disability vs. Retirement: Making the Right Choice
The Social Security Administration (SSA) stands as a guardian, offering disability, survivors’, and retirement benefits. However, one can’t receive disability and retirement benefits simultaneously. If you’ve reached your full retirement age (between 66 and 67, depending on your birth date), disability benefits are off the table, regardless of your health status.
Here’s a golden nugget of advice: if you find yourself unable to work and are torn between filing for Social Security disability or early retirement, opt for disability benefits first. Why? Disability benefits are akin to receiving a full retirement check early. If you choose early retirement, your benefits shrink in comparison. Upon reaching full retirement age, your disability benefits gracefully transform into retirement benefits without changing in amount, plus you get the perk of supplementing your income with a bit of work, if you so choose.
Survivors’ Benefits: Understanding Your Entitlement
Survivors’ benefits are a lifeline for spouses of departed workers. Eligibility for these benefits hinges on a few criteria: being over age 60, a marriage that lasted at least a decade, or having a child under age 16. Interestingly, even a divorced spouse can claim survivors’ benefits, provided they remained single.
The amount you receive varies based on when you choose to draw these benefits. Drawing earlier means receiving less. A savvy strategy is to draw survivors’ benefits until you reach age 70, then switch to your own retirement benefits, which could soar to 130% of your monthly entitlement. This approach lets you maximize your retirement while still enjoying monthly payments from the SSA.
Starting Your Application: A Step-by-Step Guide
If you’re eligible for multiple benefits, the SSA will ensure you receive the highest amount. Applying for disability or retirement benefits? You can smoothly navigate the application process online through the SSA’s website. However, if you’re applying for survivors’ benefits, a personal visit to your local Social Security office is in order.
Navigating these options, particularly when it involves delaying your retirement benefits to receive survivors’ benefits, can be intricate. It’s wise to have a heart-to-heart with the SSA at 1-800-772-1213 to explore your options and determine the best route for you.
Understanding the ins and outs of Social Security benefits isn’t just about enhancing your income; it’s about honoring the work you’ve done and ensuring you spend your retirement years in comfort and dignity. By delving into the details now, you’re setting the stage for a retirement filled with security and the freedom to enjoy the things you love most.
