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Money Only 23% of Older Workers Are Considering This Smart Social Security Strategy

16:40  01 june  2020
16:40  01 june  2020 Source:   fool.com

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  The Unemployment Rate Among Older Adults Is Skyrocketing -- Here's What to Do if You Lose Your Job Don't let losing your job wreck your retirement plans.While workers of all ages have been affected by layoffs and furloughs, older workers might be particularly vulnerable. And although job loss at any age can be devastating, losing your job later in life can potentially wreck your retirement plans. Here's what to do if it happens to you.

Fewer workers are taking Social Security early. Only 5.2% of men and 11.4% of women managed to wait until age 66 ( considered “full retirement age” for workers who turned 65 after 2008) to start For singles, stretching Social Security income can be more challenging, especially if you haven’t

Older workers are found in every type of industry, including blue-collar, white-collar, and service industries, with slightly more in white collar industries. This strategy allows the employer to retain the experience and knowledge base of the older worker , while enabling the employee to continue

a man sitting on a bench: Only 23% of Older Workers Are Considering This Smart Social Security Strategy © Provided by The Motley Fool Only 23% of Older Workers Are Considering This Smart Social Security Strategy

Millions of retirees depend on Social Security benefits to make ends meet during their senior years. The average Social Security recipient receives just over $1,500 per month in benefits, and nearly one-quarter of married couples and close to half of unmarried beneficiaries rely on this money for at least 90% of their income in retirement, according to the Social Security Administration.

However, Social Security is facing serious financial challenges that have only been exacerbated by the coronavirus pandemic, so you may not be able to depend on your benefits as much as you expect to in retirement. That means it's wise to take action now and start planning for how you'll maximize your monthly checks -- but few older Americans are planning to take advantage of this one benefit-boosting strategy.

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Social Security can be a complex topic, but it's an important subject to understand if you want to Meanwhile, more than 90% of adults age 50 or older say they don't know what factors affect the While there are many Social Security claiming strategies out there, some are more well-known than

Social Security is a vital source of income for millions of American retirees, as it makes up more than half of all income for the majority of retired households. How is Social Security calculated for retired workers ? It's a smart idea to check your statements regularly. In addition to your estimated benefit

a person sitting on a bench: Senior couple sitting on a bench by the beach © Getty Images Senior couple sitting on a bench by the beach

The Social Security strategy that could increase your benefits for life

The age you begin claiming retirement benefits has a lifelong impact on how much you receive each month. When you claim at your full retirement age (FRA) -- which is age 67 for those born in 1960 or later, or either 66 or 66 and some number of months for those born before 1960 -- you'll receive the full benefit amount you're theoretically entitled to collect. But if you claim before or after that age, it will affect your monthly benefit amount.

You can file for retirement benefits as early as age 62, but your checks will be reduced by up to 30% if you claim that early. This benefit reduction is permanent, too -- meaning you won't start collecting your full benefit amount once you reach your FRA, as some retirees mistakenly believe.

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Social Security numbers were created for the Social Security program, but they are now a critical part of our identity, used not only by financial companies but also in healthcare, employment, taxes, and more. Each Social Security number has nine digits. As the Social Security Administration (SSA)

Social media makes it easy to identify potential candidates for job openings, but that’s led companies to focus too much on “passive” candidates who aren ’t looking to move—a strategy that hurts retention because internal candidates feel overlooked.

Delaying retirement benefits, on the other hand, will result in a permanent boost in benefits. If you have an FRA of 66 years old and claim at age 70, you'll collect your full retirement benefit amount plus an additional 32% every month for the rest of your life.

Delaying retirement benefits can be a smart strategy, yet only 23% of workers in their 50s and 60s expect to take this Social Security approach, according to a recent survey from SimplyWise. In addition, 58% of survey respondents said they don't believe Social Security benefits will allow them to continue living the same quality of life they're accustomed to. In other words, although the majority of people realize it will be tough to live comfortably on Social Security benefits, less than one-quarter of those nearing retirement plan to maximize their benefits by waiting to claim.

Is delaying retirement benefits the right choice for you?

Waiting until past your FRA to claim retirement benefits can be a smart decision for many people, but it's not always the right choice for everyone.

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Giving due attention to Social Security claiming can pay off big, despite the demise of some of the arcane strategies . As more and more workers approach and enter retirement without the benefit of pensions, the lifetime income stream of Social Security --and the enlarged benefits that can be

Social Security is "any government system that provides monetary assistance to people with an inadequate or no income". In the United States, this is usually called welfare or a social safety net

If you don't have much in savings and are worried about how you'll afford to retire, delaying might be a wise move. You could potentially receive hundreds of dollars more per month by waiting, and that money can go a long way if you're strapped for cash in retirement.

Additionally, delaying benefits may be a good choice if you expect to live a very long life. In theory, you should receive roughly the same amount in lifetime benefits regardless of when you claim. Claim early, and you'll receive smaller checks but more of them over a lifetime, or delay benefits and receive fewer but bigger checks. However, this calculation assumes you'll live an average lifespan, or around 85 years, according to the Social Security Administration. If you have reason to believe you might live longer than that, you could come out ahead by delaying benefits and earning those bigger checks.

On the other hand, if you think you'll live a shorter-than-average life or have a robust retirement fund and don't necessarily need the extra benefits, claiming earlier might be the right move. Some people also may not have a choice in when they retire, so if you're forced into an earlier-than-expected retirement and need the cash, you might need to claim early.

35% of Workers Are Making This Dangerous Social Security Mistake

  35% of Workers Are Making This Dangerous Social Security Mistake Don't fall into the same trap.Unfortunately, 35% of workers today risk doing just that. That's how many expect Social Security to serve as a major income source during retirement, according to a recent survey by the Employee Benefit Research Institute. But that's a mistake that could prove catastrophic down the line.

When executives today consider the forces that are changing how work is done, they tend to think mostly about disruptive technologies. That brings us to our third finding: Workers are seeking more support and guidance to prepare themselves for future employment than management is providing.

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Also, keep in mind that not all Social Security benefits rise if you delay past FRA. Spousal benefits, for example, aren't entitled to delayed retirement credits. You won't get a bigger spousal benefit payment by waiting until 70 than you would if you claimed at FRA.

No matter when you choose to start claiming Social Security benefits, make sure you've put some thought into your decision. Delaying benefits can be a smart move in some situations, and by taking advantage of this strategy, you can boost your retirement income for life.

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The $16,728 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Here's How COVID-19 Is Affecting Near-Retirees' Outlook .
Hint: It's certainly not helping things.The effects of the ongoing pandemic could be huge for those people who are planning to leave the workforce within 10 years. Specifically, about 37% say they won't be able to enjoy the retirement lifestyle they wanted because of the financial hit they expect to take, and a little over 40% say that COVID-19 will delay their retirement plans.

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