August 14 is Social Security Day. Since it was enacted on Aug. 14, 1935, Social Security has helped millions of Americans retire with some financial support. How can you best use Social Security as part of your retirement income strategy?
For starters, think about timing. You can begin collecting Social Security as early as 62, but your benefits will increase if you wait until your full retirement age, at 66 or 67. And you’ll get even larger payments if you wait until 70.
Also, be aware that Social Security will probably only replace slightly more than a third of your pre-retirement income. So, while you’re working, contribute as much as you can afford to your employer-sponsored retirement plan and IRA.
Finally, keep in mind that all Social Security filing strategies should be based on your specific needs and health considerations. For more information, visit the Social Security Administration website at socialsecurity.gov. The more you know about your options, the better prepared you’ll be.