Do You Know How Much Social Security You Stand to Receive Over Your Lifetime?

Social Security is a critical aspect of retirement planning for many Americans. However, there are several factors that can impact the amount you receive from the program. In this article, we will discuss some of the key questions you should be asking to help maximize your Social Security benefits. In this article, we will cover essential topics such as lifetime benefits, the effects of working beyond retirement age, and the significance of spousal and survivor benefits.

The Bigger Picture: Lifetime Social Security Benefits

When deciding when to claim Social Security, it's crucial to think about the long-term implications rather than just the immediate increase in monthly benefits. Lifetime benefits for both spouses can differ significantly depending on when you choose to claim. As Elaine Floyd points out in her article, a hypothetical couple's lifetime benefits could range from $1.7 million to $2.4 million based on their claiming strategies.

Earnings and Benefits: The Connection

Many people underestimate the impact of their work history on their Social Security benefits. If you stop working earlier than anticipated or continue working into your 70s, your benefits will be affected. Social Security Administration (SSA) keeps track of your earnings, and any new, higher-earning years can replace older, lower-earning years, resulting in an upward adjustment of your benefits.

Maximizing Spousal and Survivor Benefits

Understanding the nuances of spousal and survivor benefits can help you make the most of your Social Security benefits. If you're the higher-earning spouse, claiming your benefit at age 70 can maximize your surviving spouse's future benefit, similar to a life insurance policy. Conversely, if the higher-earning spouse passes away first, the surviving spouse can benefit from the maximized amount.

For young widows, claiming survivor benefits too early might lock in a lower amount for life. Waiting until full retirement age, while considering their own work record, can help maximize the benefits received.

Divorced individuals should also be aware of the potential benefits they can receive based on their ex-spouse's record. Keeping track of their ex-spouse's status is crucial, as they might become eligible for a divorced-spouse survivor benefit equal to 100% of their ex's benefit upon their passing.

When it comes to Social Security, it's essential to have a thorough understanding of the factors that can impact your benefits. Asking the right questions and considering the long-term implications of your choices can help you maximize your lifetime benefits. It's crucial to evaluate your work history, spousal and survivor benefits, and any unique situations, such as divorce, to make the most informed decisions. Consult with a financial advisor or professional to help you navigate these critical decisions and secure a more comfortable retirement.

LynnLeigh & Company - A Registered Investment Advisor This information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believed to be reliable – LynnLeigh & Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice.   Past performance is not a guarantee of future returns.