Recently, CNBC highlighted some frequently overlooked Social Security claiming strategies. The article offered tips for filing and suspending based on spousal benefits and navigating the earnings penalty. In addition, Covisum President and Founder, Joe Elsasser, CFP®, offered this advice about canceling your Social Security payments:
Q: What are differences between Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)?
A: While both the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) are aimed at reducing Social Security benefits for people who receive a pension from work in which they did not pay into the Social Security system, they differ in who they affect and how they impact benefits. You can get more information about WEP and GPO here.
A recent article from CNBC says Social Security checks will likely increase next year. A 2.8 percent cost-of-living adjustment has been estimated by The Senior Citizens League. If the estimate is correct, the increase will be the highest bump retirees have seen in recent years.
According to CNBC, one key calculation to keep in mind, when deciding when to claim Social Security benefits, is the "breakeven point," or the point at which the amount you receive if you claim later equals the amount you would have received if you had started early. However, a few blind spots can create misleading results and lead you astray.
A recent article from CNBC offered an analysis of a handful of Social Security calculators currently available to assist advisors and consumers with the best claiming strategy. The details surrounding Social Security benefits are extensive, and calculators help streamline the process.
Covisum President, Joe Elsasser, CFP®, was recently quoted in a Social Security Q&A in USA Today.
According to an article from CNBC, the best way to determine the optimal age to claim your Social Security benefits is by calculating when you would break even. The break even point is when the amount you receive if you claim later equals the amount you would have received if you had started early. Generally, the age range when an individual would break even is 77 to 83-years-old.
Results from a recent Harris Poll from the Nationwide Retirement Institute® suggest many Americans nearing retirement age lack sufficient understanding of their Social Security benefits.
InvestmentNews summarized the survey results.
Some of the key findings:
In an ongoing series exclusive to ThinkAdvisor, Joe Elsasser, CFP® and Ron Piccinini, PhD provide readers with two distinct perspectives on the same topic. Check out the most recent installment, "Social Security Timing: What couples should consider."
In this edition, we asked both Joe and Ron how a married couple should decide when to claim Social Security.
Joe's response included: