Thursday , April 25 2019
Home / Money / Social Security 101, Literally
Social Security

Social Security 101, Literally

Plan your strategy know and not be surprised

For those contemplating retirement or planning your Social Security future, it’s time to put back on your student cap and study up.

In this case, Andy Landis, a Seattle-based author and expert on Social Security, we’re talking math class and time. He feels that it’s time for Americans to do their homework rather than have any surprises in their retirement when it comes to taking Social Security.

“A little understanding of the numbers goes a long way to avoiding retirement surprises and shortfalls,” Landis says.

What people need to know is that Social Security is like a pension system in that it’s based on three main factors of eligibility, earnings and age, Landis says. It’s just that Social Security has its own twist on each of those, he says.

There’s a minimum standard to qualify for Social Security and that’s 40 work credits. Since people can earn up to four work credits a year or what amounts to 10 years of work.

Just in 2015 alone, people receive one word credit for every $1,220 they earn during the year, Landis says. If you earn $4,880, you get four credits for the year.

That only applies if you pay Social Security taxes on your income, he says.

What’s important in determining your monthly benefit is your lifetime of earnings, Landis says. Unlike most pensions that are based on your best five years of earnings at your job, Social Security is based on the best 35 years of work, Landis says.

And since people tend to earn the most money at the end of their careers, that’s been one reason why some people work longer. The best 35 years are taken throughout your lifetime and no matter what point in your life they accumulated.

The higher the average over those 35 work years selected the more in monthly benefits you get. If you have less than 35 years, those years will be listed as zero and lower your average, he says.

Landis says people should avoid the mistake of thinking that high late-career earnings mean high Social Security. The lower earnings from earlier in life can bring that average way down.

But Landis says that even though you retire a few years early, that shouldn’t drastically reduce your Social Security because a few zeroes don’t impact your 35-year average much, he said.

What does impact your benefits, however, is taking Social Security at 62 instead of your full retirement age of 66 or 70.

That’s where age is a big factor of when you start your payments.

If you retired at your full retirement age, you get 100 percent of your benefits. If your full retirement age is 66 and you retire at 62, you receive 75 percent of your Social Security benefit, he says.

Those who wait to take their Social Security after their full retirement age receive 132 percent of their benefit. The benefit tops out at 70 so there’s no reason to delay filing after that, he says.

It’s all part of your financial strategy for retirement.

 

Check Also

Reverse Mortgage pros

5 Upsides To An HECM Reverse Mortgage

As you near your golden years, the last thing that you want to have to ...

54 comments

  1. Analysts had expected that the increase in production would make Boeing deliver nearly 600 737 aircraft this year, 90% of which are MAX models. Boeing’s share price fell more than 2% in the hours after it announced the news on Friday, and the company’s current market value is $216 billion. Boeing’s market value has evaporated by more than $25 billion since last month’s fatal crash on a 737 MAX aircraft from Ethiopian Airlines.

  2. nglyfqnis,If you have any struggle to download KineMaster for PC just visit this site.

  3. zihhcyk Adidas Yeezy,Very helpful and best artical information Thanks For sharing.

  4. dkbzqonb,Definitely believe that which you said. Your favourite justification appeared to be on the net the simplest thing to remember of.

  5. btiatbrydcs,A fascinating discussion is definitely worth comment. I do think that you ought to publish more on this topic, it may not be a taboo uspkosi,subject but generally folks don’t talk about such subjects. To the next! All the best!!

  6. wyzbgle Yeezy Boost,Some really nice stuff on this website, I enjoy it.

  7. I was looking at some of your articles on this site and I believe this internet site is really instructive! Keep on posting .

  8. mftmspshnkq,Definitely believe that which you said. Your favourite justification appeared to be on the net the simplest thing to remember of.

  9. Great, google took me stright here. thanks btw for this. Cheers!

  10. Ha, here from yahoo, this is what i was searching for.

  11. pljxseyuv,A very good informative article. I’ve bookmarked your website and will be checking back in future!

  12. Deference to op , some superb selective information .

  13. Thanks for this website. I definitely agree with what you are saying.

  14. Yeah bookmaking this wasn’t a risky decision outstanding post! .

  15. Great stuff to check out, glad that google brought me here, Keep Up cool Work

  16. I am not rattling great with English but I get hold this really easygoing to read .

  17. Hello, bing lead me here, keep up great work.

  18. I like this article, useful stuff on here : D.

  19. I consider something really special in this site.

  20. Enjoyed reading through this, very good stuff, thankyou .

  21. Enjoyed reading through this, very good stuff, thankyou .

  22. Great stuff to check out, glad that duckduck led me here, Keep Up awsome Work

  23. Usually I don’t read post on blogs, but I would like to say that this write-up very forced me to try and do it! Your writing style has been amazed me. Thanks, very nice article.

  24. Thanks so much for providing individuals with an extraordinarily splendid opportunity to check tips from here. It’s usually so pleasurable and also stuffed with fun for me and my office mates to visit your blog really three times a week to find out the fresh stuff you will have. And of course, I’m so at all times fulfilled with the effective secrets you give. Some 2 ideas in this article are undoubtedly the finest I have ever had.

  25. I like this site because so much useful stuff on here : D.

  26. It is perfect time to make some plans for the long run and it’s time to be happy. I have read this put up and if I could I desire to counsel you some interesting things or suggestions. Maybe you could write subsequent articles relating to this article. I want to read even more things approximately it!

  27. Great stuff to Read, glad that Yahoo took me here, Keep Up nice job

  28. You actually make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complex and extremely broad for me. I am looking forward for your next post, I’ll try to get the hang of it!

  29. I really appreciate this post. I’ve been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thank you again

  30. Hello, bing lead me here, keep up nice work.

  31. Thanks so much for providing individuals with an extremely pleasant chance to check tips from this blog. It really is very excellent and as well , packed with a great time for me personally and my office peers to visit the blog more than 3 times in 7 days to find out the new guidance you will have. Not to mention, I’m so usually amazed considering the staggering guidelines served by you. Certain two facts in this posting are ultimately the very best we have all ever had.

  32. I’ve been exploring for a little for any high quality articles or weblog posts on this sort of area . Exploring in Yahoo I eventually stumbled upon this site. Studying this information So i’m happy to show that I have an incredibly good uncanny feeling I discovered just what I needed. I most undoubtedly will make sure to do not forget this web site and provides it a glance regularly.

  33. With every little thing that seems to be developing throughout this subject matter, all your viewpoints are generally quite radical. Nevertheless, I am sorry, but I can not give credence to your entire theory, all be it exciting none the less. It would seem to me that your opinions are actually not totally justified and in reality you are your self not wholly convinced of the assertion. In any case I did take pleasure in reading through it.

  34. Howdy just wanted to give you a quick heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  35. you could have an ideal blog here! would you prefer to make some invite posts on my weblog?

  36. Wow! Thank you! I always needed to write on my website something like that. Can I implement a fragment of your post to my website?

  37. Excellent post. I was checking constantly this blog and I’m impressed! Extremely helpful info specifically the last part 🙂 I care for such info much. I was looking for this particular info for a very long time. Thank you and good luck.

  38. Thank you a lot for sharing this with all of us you really recognise what you are talking approximately! Bookmarked. Kindly also consult with my web site =). We could have a hyperlink alternate agreement among us!

  39. I have been absent for a while, but now I remember why I used to love this blog. Thank you, I¡¦ll try and check back more frequently. How frequently you update your web site?

  40. Do you mind if I quote a few of your articles as long as I provide credit and sources back to your weblog? My blog is in the very same niche as yours and my users would certainly benefit from a lot of the information you provide here. Please let me know if this ok with you. Appreciate it!

  41. After examine a number of of the weblog posts on your web site now, and I truly like your way of blogging. I bookmarked it to my bookmark website checklist and can be checking again soon. Pls take a look at my web page as nicely and let me know what you think.

  42. very good post, i actually love this web site, carry on it

  43. There are certainly loads of particulars like that to take into consideration. That is a great point to convey up. I offer the ideas above as basic inspiration but clearly there are questions just like the one you convey up where the most important thing will likely be working in sincere good faith. I don?t know if best practices have emerged around things like that, but I am positive that your job is clearly identified as a good game. Each girls and boys really feel the affect of only a second’s pleasure, for the remainder of their lives.

  44. I just could not leave your website prior to suggesting that I really loved the usual info an individual provide in your visitors? Is gonna be back ceaselessly in order to investigate cross-check new posts

  45. Heya i am for the primary time here. I came across this board and I in finding It truly useful & it helped me out much. I am hoping to offer one thing again and aid others such as you helped me.

  46. A powerful share, I just given this onto a colleague who was doing slightly analysis on this. And he the truth is purchased me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I feel strongly about it and love reading more on this topic. If attainable, as you become expertise, would you mind updating your weblog with extra particulars? It is extremely useful for me. Big thumb up for this weblog submit!

  47. It’s actually a nice and helpful piece of info. I am glad that you simply shared this helpful information with us. Please keep us up to date like this. Thanks for sharing.

  48. Simply wish to say your article is as amazing. The clarity in your post is just spectacular and i could assume you are an expert on this subject. Well with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please carry on the enjoyable work.

  49. This actually answered my drawback, thanks!

  50. This really answered my downside, thanks!

  51. Fantastic website. Plenty of useful information here. I am sending it to some friends ans also sharing in delicious. And obviously, thanks for your sweat!

  52. How much is a First Class stamp? http://blog.cilek.com/etiket/trendler/ tadalista india “all participants in policy debates should retain a healthy skepticism about retrospective statistical analysis. Trillions of dollars have been lost and millions have been unemployed because the lesson was learned from 60 years of experience between 1945 and 2005 that “American house prices in aggregate always go up.” This…was a data regularity until it wasn’t. The extrapolation from past experience to future outlook is always deeply problematic and needs to be done with great care.”

Leave a Reply

Your email address will not be published. Required fields are marked *