| Claiming Social Security can be complex.
There's no simple, one-size-fits-all answer when it comes to timing a claim — your longevity, savings and any other sources of income become important factors.
And yet, knowing when to take Social Security just might be the most important decision you'll make as you head into retirement.
For those in your 30s, 40s and 50s, you may not be spending much time thinking about that financial safety net you're building for your retirement years. However, Social Security will be there when you retire to provide a monthly income after you reach retirement age — no matter how long you live.
Overall, many Americans have little understanding of how much money they will need in retirement and what they can expect to receive from Social Security. Yet, without such information, they may not be able to plan for the future and make some adjustments while they are still working and earning an income.
That's why the more you know about Social Security, the more likely you'll be able to maximize the benefits you've earned over a lifetime of working.
It's so important to understand the right time to claim Social Security benefits, because it means more money in your pocket in those retirement years. While it's one of the biggest financial decisions people can make, sadly most find themselves confused and somewhat overwhelmed by the entire process.
To that point, a recent quiz given to near-retirees found most people could not pass a 12-question true or false Social Security test. What's more, just 3% of the respondents were able to answer all of the questions correctly.
So, here's your challenge. Take the quiz and see if you have a handle on Social Security.
For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. |
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