9 Questions To Ask Before You Take Social Security

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The right time to take Social Security is different for everyone and depends on your financial plan and needs. There are a few questions you can ask yourself to determine when is the best time to take Social Security in your situation.

Will you keep working?

The first question to ask yourself before considering taking Social Security is whether you will continue to work. If you have reached Social Security age but continue to work, it is probably in your best interest not to take Social Security just yet. Every year you wait, you get an additional 8% growth, and there may be some adverse tax consequences if you take SS while you have other income.

Do you need the Social Security money?

How Fast Should You Use Social Security Money? If you can put off taking SS while using your other investments, it may be worth growing that. If not, you should dive into your Social Security sooner. Working with a financial advisor and having a sound financial plan can help you determine the answer to this question.

Do you have multiple investments?

If you have multiple investments and have saved quite a bit, you have more options regarding when to take your Social Security. If you skimp just a little bit, delaying taking your SS could put you in a position of using up your investments too quickly, which wouldn’t be a good situation financially.

Where are your investments located?

Are our investments in tax-advantaged accounts? Are they easily accessible? The answers to these questions play into how and when you want to take your Social Security.

What is your risk tolerance?

What is your risk tolerance when it comes to investing? Your personal risk tolerance when investing is another factor that determines when to take Social Security.

If you are married, is there an age difference?

If you are married, is there a big age difference between you and your partner? If you die, your spouse will receive your benefit or theirs, whichever is higher. There are additional complications that come into play when there is a large age difference – who continues to work, etc.

How is your health?

Understanding your health situation, and ultimately your potential life expectancy, are important factors in determining your Social Security timeline. If you are in good health and have a long life expectancy, you can delay taking Social Security.

How Much Social Security Does Your Spouse Get?

The estimated amount of Social Security your spouse can receive also affects when you should take Social Security and how you schedule your withdrawal.

What do your pension costs look like?

Do you spend more or less on your pension? Do you plan on traveling up front and then slowing down as you get older? These questions about how to structure your retirement will help you determine whether you should withdraw your Social Security as soon as possible or postpone it a bit.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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