The Social Security Review Every Near-Retiree Should Do

As you approach retirement age, it’s important to carefully consider when to start claiming your Social Security benefits. While you may be tempted to start receiving benefits at age 62, there are several key factors to keep in mind that could impact the amount you receive each month.

One of the first steps in planning for your Social Security benefits is to review your Social Security statement. This statement, which can be accessed through the Social Security Administration’s website, provides valuable information about your lifetime earnings and estimated retirement benefits at different claiming ages. It’s essential to verify that your earnings record is accurate, as any discrepancies could result in a lower benefit amount. Be sure to cross-reference your records with old W-2s, tax returns, and pay stubs, paying close attention to any years with missing information.

When comparing claiming ages, it’s important to consider how your estimated benefit will change based on when you choose to start receiving benefits. While delaying benefits will result in a higher monthly benefit, some individuals may opt to start claiming earlier for immediate cash flow. Factors such as health, work plans, and life expectancy should also play a role in your decision. For married couples, coordinating when to claim benefits can maximize overall benefits, with the higher earner often waiting until age 70 to boost the lower-earning spouse’s survivor benefit.

In addition to reviewing your earnings history and considering the optimal claiming age, it’s important to check for other details that could impact your benefits. Certain portions of your Social Security benefits may be taxable, depending on your combined income. Planning for retirement and utilizing tax-deferred retirement accounts can help spread out your tax burden while maximizing your benefits. Setting up your Social Security account and inputting personal details, such as direct deposit information, in advance can help minimize delays when you’re ready to claim benefits.

While navigating the complexities of Social Security may seem daunting, taking the time to audit your information and create a Social Security account now can help you make informed decisions about when to start claiming benefits. By carefully reviewing your options and considering all relevant details, you can ensure that you’re maximizing your Social Security benefits in retirement.