Today I want to answer the questions I get most often concerning Social Security.
The very first thing people ask me and want to talk about is will it be there, or will it be
Well, being your Research Champion I have actually read the Social Security Trustee’s report.
As you can imagine, it’s a page-turner. Here is what you need to know. If nothing changes the
trust fund will run out of money by 2032. However, don’t panic, because there are enough “in-
flows” that will provide 75% of your benefit. Let’s just hope Congress does something so that
The next question is when do I take it?
The best time to take it is at age 70 when you will get the maximum Social Security available.
However, there are other important considerations like life expectancy and your income at age
62 or age 65.
What happens if I take it while I am working?
There is also something called “Full Retirement Age” or FRA. If you take Social Security at or
before FRA, you will have $1 held back for every $2 you earn over $18,880. So as an example
if you earn $28,880, $5,000 of your Social Security is held back.
Am I taxed on Social Security?
Regardless of when you take Social Security you can have some or most of it taxed depending
on your income from your job. It can include other income as well like a pension, IRA
withdrawal etc. IF you are single income from 25k to 32k, 50% of your Social Security is
taxable, above 32k it’s 85%, ouch! IF you are married then income from 32k to 44k is at 50%,
anything 44k is at 85%.
I am now divorced; can I take my spouse’s Social Security?
Yes, you can file and get about 50% of your spouse’s Social Security. You have to have been
married for ten years, divorced for at least two years, and you can NOT currently be married.
Then at age 70 either keep it or switch to your own, whichever is greater.
My spouse passed away, can I file for his or her Social Security? Yes, you can. In fact, you can take what you get from their Social Security and then at age 70
either keep it or switch to your own, whichever is greater.
To help get a handle on what would be best a great place to start is attending our weekly IFW
retirement roadmap webinar. It’s free, every Wednesday at 7pm EST.