Social Security Aint Easy!!!

Most current and former federal workers are or will be eligible for monthly Social Security benefits. For most federal workers, social security is the third leg in a three legged stool of retirement income.  Obviously a retiree will have the FERS annuity, most with have a TSP and social security finishes the third leg.

Choosing Social Security options can be as confusing as attempting to do an analysis on the tax code.  There are literally thousands of options for the married couple to elect Social Security.  Knowing the best options for your long term plans is important.  Once you elect a Social Security option, there are no "do overs". 

While Social Security is available as early as age 62,  most people can dramatically boost that monthly payment by delaying it. If they wait until age 70 the value it will be worth 76% more than if taken at age 62. Despite that, she said that 72% of Social Security recipients are receiving reduced benefits, and will for life, because they took them before their full retirement age. 

On the other hand, there are times when it is best for individuals to take benefits as soon as they are eligible. I have met with many prospective clients that have permanently reduced their benefit by electing too early. Confusing, right?

That’s because planning for retirement is not easy. It involves asking the right questions of the right people, and knowing what those questions are. And it takes realizing that many people working today, when they do decide to retire will be alive, kicking, spending and traveling for decades to come. In many cases some of you will be retired longer than you worked.

Matt