2. Delay filing for as long as possible
When you reach it, you are entitled to a full monthly social security benefit, based on your salary payment full retirement age (FRA). FRA is 66, 67 or somewhere in between, depending on when you were born. But you don’t have to apply for benefits once you get to the FRA. In fact, every year you delay applying, until you are 70, your benefits will increase by 8% – and that reinforcement will remain in effect for the rest of your life.
Let’s say you’re entitled to $ 1,500 a month for social security under an FRA of 67. If you wait until 70 submits your application, you’ll get in line for $ 1,860 instead.
3. Save your savings in a Roth IRA
Many older people are shocked to learn that social security benefits are sometimes subject to federal taxes. Basically, the more income you have outside of social security, the more likely you are to receive tax on those benefits.
To see if this happens to you, you will need to calculate your temporary income, which is your non-social income, plus 50% of the benefits you collect each year. You could tax up to 50% of your fees if your temporary income falls between $ 25,000 and $ 34,000 as an individual taxpayer or between $ 32,000 and $ 44,000 as a joint applicant. And above these limits, you risk taxing up to 85% of your fees, regardless of your application status.