Tue. Dec 5th, 2023

2. It pays to delay Social Security indefinitely to grow your benefits

Just as you’re allowed to claim Social Security before FRA, you can also delay your filing past FRA and boost your benefits by 8% a year in the process. That increase will then remain in effect permanently.

Now, you might think, “Great, I’ll delay benefits until my mid-70s to score a higher monthly payout.” But actually, you can only get credit for delaying your filing until 70. After that, there’s no financial incentive to hold off on signing up, and if you wait any longer, you’ll actually risk losing out on money you were otherwise entitled to.

3. Your Social Security benefits will be yours to enjoy tax-free

Many people assume that the money they collect from Social Security won’t be subject to taxes. But while that’s true for some seniors, it’s not the case for others.

Whether your benefits are subject to taxes will hinge on your provisional income, which is calculated by taking your non-Social Security income and adding in half of your annual benefit. If your total falls between $25,000 and $34,000 and you’re single, you could be taxed on up to 50% of your benefits; beyond $34,000, you could be looking at taxes on up to 85% of your benefits. If you’re married with a provisional income of $32,000 to $44,000, you’ll risk taxes on up to 50% of your benefits, and beyond $44,000, you could be taxed on up to 85% of your benefits.

By senior