In order to make your ride into the sunset of retirement as enjoyable as possible, you need to identify the best strategy for claiming social security benefits.
Before you apply for retirement benefits, Schulte & Company can provide an analysis that, considering your projected longevity and financial capabilities, will detail the exact month in which you should begin your social security retirement benefits.
Most people apply for Social Security retirement benefits when they become eligible at age 62, or soon after. For many, if not most, that's a costly mistake. Here's why:
On the flip side, waiting too long to begin benefits can also be a problem. People may not live as long as they think, which can result in money left on the table.
It pays to understand all your options and to make an educated choice.
Social security is funded by a 6.2% deduction from an employee's wages and a matching 6.2% contribution from the employer. But when your self-employed, you pay both the employee and employer portion. In other words, a self-employed person pays twice as much for the same retirement benefit. The good news is that a self-employed person may be able to control the social security tax; ensuring that the amount they pay in social security taxes makes sense when compared to what they may get when they retire.
For self-employed clients, S&Co recommends that we analyze social security options several years before the planned retirement age. This enables our self employed clients the ability in impact their retirement pay significantly.