| When should I start my Social Security benefits? That's one of many common questions from people who are approaching retirement.
To be honest, Social Security is a complex system. It may provide economic security for those who need it, but the factors and numbers that affect your payout are often intricate and difficult to understand.
However, it pays to put in the time to better understand the many benefits of Social Security because it touches the lives of every American, both directly and indirectly. That's why it's so important to get a handle on how the Social Security claiming rules may affect your overall retirement planning and various strategies that may be available to you.
Yet, despite Social Security being so important, many near-retirees — ranging in age from 55 to 65 — are unaware of the basics about the program, according to some new research data from MassMutual. To that point: About 43% of 1,500 people surveyed by MassMutual do not know how much of their income will come from Social Security benefits. In addition, the firm posed a 13-question true/false quiz to the respondents. The result: 69% either barely passed or failed.
Those numbers are alarming.
When it comes to Social Security retirement benefits, your decision shouldn't be based on one-size-fits-all assumptions. Your age, marital status, health and financial needs are all important considerations. If you're getting ready for retirement, it's important to know how Social Security benefits work and what you can do to make the most of them.
It's never too early to start understanding Social Security benefits for both you and your family. The more you learn now, the better prepared you will be to make decisions about when and how to claim your benefit.
For more timely advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. To listen to the latest edition of the PF team's weekly Twitter Space, "This Week, Your Wallet," click here. |
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