So you're ready to take the big plunge into the golden years and retire. Congrats! This is a big step for the health and well-being of your future, which you have probably looked forward to for a very long time. Now that it's here, you can rest assured in the fact that all your hard work has paid off. You hopefully have all your 401(k), pensions, and investments ready to work for you in retirement, but there are also a few things you need to do before you start to claim your Social Security funds. Before you start claiming those funds be sure you check these six things off of your list to get all squared away. Once completed you'll be well-equipped to receive those funds each month to start your retirement off on the right financial foot.
#1: Find Out Your Benefit Credits
This is very important to look into. Make sure you have the right number of credits to retire and receive Social Security. It's 40 credits. You can go to ssa.gov to find out if you have the right amount of credits to qualify. Basically, you just need to have worked for a certain amount of time and made enough money to earn Social Security for retirement.
#2: Check Up On Your Spousal Benefits
You may be able to get Social Security spousal benefits as well if you were married for a certain number of years. This is true even if you are divorced from that spouse. So check in to the fact you may receive better benefits in your spouse or former spouse's Social Security benefit credits.
#3: Know The Application Is Online
You can complete the application for Social Security retirement benefits online at ssa.gov and the great news is that the application only takes about 15 minutes. How easy is that?
#4: Make Sure You Are The Right Age
You can start to apply for Social Security retirement benefits at 61 years old and nine months, but you won't receive the benefits usually until you are 66-67 years old depending on when your birthdate falls in the calendar year.
#5: Know That You Are Ready To Stop Work
This is an important one. Some people don't want to retire. That's completely up to your lifestyle, health, and comfort level. Know that continuing to work can affect the amount money-wise you receive in benefits. So it might not be worth it to keep that part-time job if it's not going to take care of you in your later years.
#6: Use The Retirement Estimator
Using an online retirement estimator can go a long way toward planning how much you are going to have to live on each month. Being on a fixed Social Security income is doable if you are able to plan and budget accordingly. It may mean downsizing your current living situation into something more financially manageable or paying off some debt before you are able to retire.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Brett Koeppel is a fee-only Buffalo financial advisor, CERTIFIED FINANCIAL PLANNERTM , and the founder of Eudaimonia Wealth. Eudaimonia Wealth is a fee-only, fiduciary, Buffalo financial planner and wealth management firm dedicated to helping families prepare for and transition into retirement by providing independent, objective financial planning and investment management advice.