5 Features of Social Security That Are Important to Keep in Mind
Should you claim your Social Security benefits ASAP? Or does it make more sense to hold out for another few years? A quick recap of the facts could help you hone in on the best decision. Every situation is unique—make sure you’re considering every possible angle.
1. The Retirement Age Is Approaching 67
Should you claim your Social Security benefits ASAP? Or does it make more sense to hold out for another few years? A quick recap of the facts could help you hone in on the best decision. Every situation is unique—make sure you’re considering every possible angle.
2. There’s an Estimated 30% Reduction for Taking Benefits at Age 62
While you can start taking your Social Security benefits as soon as you turn 62, it won’t be as lucrative as waiting. There’s a reduction in your benefits for taking payments early, and every month short of your full retirement age will have an impact on the amount you receive. The Social Security Administration estimates that you’ll have as much as a 30% reduction in benefits when you begin taking the at age 62.
3. You Can Delay Benefits Until Age 70
Just as you have the option to take your benefits prior to your full retirement age, you also have the option to delay taking your benefits past the full retirement age. You can give yourself a benefit increase by roughly 8% by deciding to wait until age 70.
4. Collecting the Social Security Survivors Benefit
If your spouse passes away, you may be eligible for Social Security Survivor Benefits. You can start receiving these benefits as early as age 60. However, it’s important to keep in mind that the amount will be reduced if you haven’t yet reached your full retirement age. What’s more, you can’t receive both Survivor Benefits and your own Social Security retirement benefits at the same time. You have the option to switch between, though, which opens up some good retirement strategies.
For example, if you’re 60 and your spouse passes away, you could start collecting Survivor Benefits right away. Then, when you turn 70, you can switch to your own Social Security retirement benefit, since it will have grown with your delayed retirement credits.
5. Remember the Taxability of Your Benefit—and Potential Reductions
Did you know that up to 85% of your Social Security benefits could be taxed? This often happens if you’re still working or pulling money from taxable retirement accounts. It definitely pays to plan ahead!
The key is to understand how your benefits and taxability will work before you decide to claim your Social Security benefits. Because if you’re not yet at full retirement age, and you’re still earning wages or business income subject to Social Security tax, taking those benefits early might cause them to be reduced even more.
We Can Help With Retirement Tax Planning
If you really want to set yourself up for success, be sure to look at all of your options. There are plenty of ways to combine your tax planning with your retirement strategy, and our firm is here to help every step of the way. Please don’t hesitate to reach out with any questions—we’re always happy to connect!
Frequently Asked Questions
Our clients appreciate our fair, transparent pricing — no surprise fees, no confusing invoices. Individual tax returns start at $750, and business returns start at $1,500. If you’d like to talk through your specific situation before committing, a one-hour consultation with a CPA and tax preparer is $250.
Every client’s needs are different, so these starting rates can vary based on the complexity of your return or the scope of services you need. Visit our pricing page for more detail.
If you need accounting, bookkeeping, or tax services, contact us today — we’d love to learn more about your situation and provide pricing tailored to your needs.
We work with a wide variety of individual and business clients across central Indiana. Our clients range from entrepreneurs and small business owners to business professionals, retired individuals, families, and business corporations of all sizes.
Whether you’re just starting a business, managing personal and family finances, planning for retirement, or running an established company, we tailor our accounting, tax, and advisory services to fit where you are and where you’re headed. No two clients are exactly alike, and neither is our approach — we take the time to understand your specific situation so we can offer advice that actually applies to you.
NSO and Company is located in Fishers, Indiana, just off I-69 near the intersection of Lantern Road and 96th Street — an easy, convenient drive from anywhere in the Indianapolis area. Our office is at 8950 Fitness Lane, Suite 100, Fishers, IN 46037.
We’re open Monday through Friday, 8 am – 4 pm, and welcome walk-ins as well as scheduled appointments. If you’d like to speak with someone directly, call us at 317-588-3131.
NSO and Company combines years of experience with personalized service to help individuals and businesses prepare their taxes accurately and on time. We take the time to understand your situation, answer your questions, and look for opportunities to help you maximize your tax savings, while staying compliant and making the process as smooth as possible. Our clients also value our fair pricing and the confidence that comes from working with a trusted local firm.
