November 27, 2013
If you’re nearing the customary retirement age of 65, you may be considering when to apply for Medicare and Social Security benefits. This is an important decision that can have significant impact on your financial situation down the road, so it is important to understand how these benefit programs work. In particular, if you are not planning to retire at the full retirement age (FRA) of 65 you should be aware that you are not obligated to apply for Social Security even if you opt-in to Medicare coverage when you are eligible. In fact, doing so can have negative financial consequences down the road.
If you are planning to apply for Medicare benefits soon, make sure you consider whether you would be better off applying for Social Security benefits later, taking into consideration your planned retirement age, your expected income (if you earn more than $15,120 a year when receiving social security you will be subject to the earnings penalty, under which one dollar of Social Security retirement benefits is withheld for benefits before FRA), and, if you are married, the spousal benefit. In many cases, if you plan to work beyond your FRA, delaying your Social Security benefits can mean a bigger payout later on.
Because Social Security retirement benefits are based on lifetime earnings, the size of the retirement benefit check that you collect will depend on your age when you apply for them. If you choose to receive benefits at the earliest retirement age of 62, you will receive less than what you would receive if you wait until 65. And, if you delay your Social Security benefits up to age 70, you will receive a Delayed Retirement Credit (a percentage increase in retirement benefits for each year beyond FRA that you do not take them).
There are several important factors to consider when deciding the best time to take Social Security benefits. If you need assistance determining what the right choice is for you from a financial perspective, please contact our office.
We are committed to helping you achieve financial success within your medical practice. Our trained staff understands the challenges that physicians face within the industry, such as increasing costs, healthcare reform, and...read more
Professional athletes and entertainers have unique needs when it comes to accounting and taxes. Wright Group has specialized expertise to help pro athletes, actors, and actresses, maximize their wealth and reduce taxes. Through tax planning and preparation, budgeting, financial forecasting and...read more
It’s hard to believe that we are already into July. Even with the deadline for filing your return and making a payment (if you owe) being extended to July 15, 2020, it still seemed like it came upon us fast. With only a few weeks left, be sure to get any final documents to us and answer any outstanding communications immediately.
New gardeners have come out of the woodwork this year, looking to create a sustainable food supply in their own backyards. Of course, not everyone has the space or the time to create a full-on outdoor garden. So, why not start small…and indoors?
It’s safe to say that most people are laser focused on money right now—specifically on how to make it last longer. To help you do just that, we compiled the following list of tips for spending less in 2020: