Majority of Americans flunk Social Security quiz

One of the most significant supplements to creating and layering a retirement income portfolio with different sources of consistent income is social security. Hence, being knowledgeable about this is essential to maximizing your benefits. We wrote a piece on the ins and outs of Social Security earlier this year, Social Security Claiming Strategies, as a refresher for our clients and to also point out that maximizing your claiming strategy can be extremely impactful to your retirement planning.

InvestmentNews ran an article saying only 28 percent out of 1500 surveyed adults received a passing grade on a true/false quiz about Social Security. The article points out two significant misconceptions:

71% of respondents incorrectly believe that full retirement age for collecting Social Security is 65, when it actually varies by birth year. The current full retirement age of 66 applies to people born from 1943 through 1954, and it will gradually increase to 67 for those born in 1960 or later.

55% also incorrectly believe they can continue working while collecting full Social Security retirement benefits, regardless of their age. In reality, those who continue to work while collecting Social Security benefits forfeit $1 in benefits for every $2 they earn over $15,720 in 2015 if they are younger than full retirement age for the full year. The earnings cap reductions disappear once you reach full retirement age.

Regardless of your net worth, getting your Social Security claiming strategies right can lead to a significant increase in retirement income available to you. As much as we focus on our investment portfolios, we would all be well served to make sure we get this part of the equation right, especially when it is within our control.

 

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