There are many more possibilities. If you have access to a Health Savings Account at work, start contributing money. These accounts offer a tax deduction upfront, while withdrawals can be taken tax-free for health costs in retirement. If you're already in good shape, with ample money in IRAs or a k plan, devise a withdrawal strategy, taking Required Minimum Distributions into account, so that you minimize taxes and avoid a tax bill on some of your Social Security benefits.
This is the biggest decision most people need to make about participating in the program. You can elect to start claiming retirement benefits as early as age 62 or as late as For each year you wait, your monthly benefit amount rises.
The argument for claiming early is to collect benefits for a longer period, especially when the gettin's good before any cuts. Perhaps you also need the income from Social Security to make ends meet now. The key argument for delaying is that you will lock in higher monthly benefits that can help you avoid running out of money in old age.
Keep in mind, also, that future COLAs or cost-of-living adjustments will get tacked onto larger benefits. Longevity risk explains why many, if not most, financial experts favor delaying for as long as you can. Reach the reporter at russ. Support local journalism. Subscribe to azcentral.
Facebook Twitter Email. Are Social Security benefit cuts a real possibility? What to know, and how best to plan for it. Russ Wiles Arizona Republic.
The average time for processing claims had peaked at days in , but SSA had cut that back to days as of September this year through increases in the capacity to hold hearings. In FY , the agency issued nearly , hearing decisions, an increase of 45 percent. But that figure could fall as much as , in fiscal even if agency funding is held steady, according to the union that represents SSA workers. Along with the threat to disability claims processing, the letter described potential further cutbacks in working hours and services.
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