Social Security – You don’t have to claim when you retire

You don’t have to claim when you retire.

Retiring and claiming are two different things. So if you have enough savings when you retire, you have two options.

– Start collecting right away. That’s what most people do.

– Delay and, while you wait, use a portion of your savings to live on. This option will draw down your savings more quickly, but increase the inflation-proof Social Security benefit you’ll get each month for the rest of your life.

Should you delay or claim right away?

No one wants to draw down all their savings. Savings are valuable as a reserve, can be invested in high-yielding assets, or left as an inheritance. But drawing an income out of your savings, over an extended period of time in retirement, can be tricky. So it could make sense to use some of your assets to live on and delay claiming Social Security.

– If you need to assure you and your spouse a higher basic income for the rest of you lives.

– If you will still have enough savings for “rainy day” emergencies.

© 2009, by Trustees of Boston College, Center for Retirement Research

Does not represent the Social Security Administration.

Social Security – Working after you Claim

You can continue to work after you claim

However, Social Security is designed to replace your earnings when you no longer work. So if you start to collect benefits and continue work before you reach your Full Retirement Age, some of your benefits might be withheld.

Before the Full Retirement Age, Social Security withholds…

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Benefits withheld aren’t lost

They’re rolled forward to increase your Social Security monthly benefits after you reach the Full Retirement Age.

For example, say you start to collect benefits at 62, continue to work, and only retire for good at 63. If you earn so much that half your monthly benefits are withheld, at the Full Retirement Age your monthly benefit is raised to what it would be had you started to collect at 62 and a half.

© 2009, by Trustees of Boston College, Center for Retirement Research

Does not represent the Social Security Administration.

Social Security – More Options if You’re Married

social security, retirement, financial planning, financial advisor colorado springsSpecial Rules that raise the benefits of the lower-earning spouse-most often the wife-generally make claiming later an attractive option for married men.

The spousal benefit

If both husband and wife have claimed benefits, each is guaranteed half what the other would get at the Full Retirement Age (whih used to be 65, is now 66, and will be 67).

  • Spousal benefits are reduced up to 35% if claimed before the recipient’s Full Retirement Age.

The survivor benefit

Widow(er)s can keep their own benefit or, if they chose, instead claim a survivor benefit equal to their spouse’s monthly benefit.

  • Survivor benefits are available as early as age 60, or age 50 if disabled, but are reduced up to 28.5% if claimed before the recipient’s Full Retirement Age.
  • Survivor benefits almost always go to widows, as most survivors are women (wives are generally younger than their husbands and live longer) and most wives have lower monthly benefits (they generally ear less and start to collect at younger ages).

Ex-spouses are entitled to these benefits if the marriage lasted 10 years.


Husbands can get more for their wives

Most wives will outlive their husband, by about 7 years on average, and most widows get their husband’s higher monthly benefit in place of their own.

A husband can increase the monthly benefit his wife gets as his survivor more than 20% if he claims Social Security at 66, no 62, and 60% if he claims at 70.

*Claiming later could be the most effective way a husband can improve his wife’s long-term financial security.

© 2009, by Trustees of Boston College, Center for Retirement Research


Financial Goal Setting – YouTube Channel

I will be starting a YouTube Channel in the next week about financial planning. I will be discussing all financial aspects (planning, life insurance, annuities, social security, ect). This is my logo sting (intro) to my new YouTube Channel.

Dale Payne – Financial Advisor in Colorado Springs

financial advisor in colorado springs, financial advise, financial advisor colorado springs, insurance agent colorado springs, retirement colorado springs, long term care, long term care colorado springs, life insurance, life insurance agentMy name is Dale Payne and I am an independent Financial Professional in Colorado Springs. I’ve worked as a Financial Professional since 1986 and as a licensed insurance agent since 1990. With my 28 years of experience, I’ve found that the people that succeed are the ones who planned for retirement. My objective is to help you achieve your goal of financial freedom. My practice is limited to the proper positioning of life, annuities, long-term care coverage and long-term care hybrids.

Credentials – CFP®, ChFC®, CLU®, CDFA®
I am a graduate of the University of Phoenix with a Bachelors Degree of Science in Business Management. I earned my ChFC® (Chartered Financial Consultant) in 2007 and CLU® (Certified Life Underwriter) in 2008 from the American College and my CFP® (Certified Financial Planning Practitioner) in 2012  CDFA® (Certified Divorce Financial Analyst. Additional professional designations of CAS® (Certified Annuity Specialist) and the CFS® (Certified Fund Specialist) with the Institute of Business and Finance. I was also an accredited member of Better Business Bureau for 22 years.

My passion is financial planning and the relationships that result when I make a difference. My other passions are travel, writing short stories, the practice of yoga, and my Miniature Schnauzer, Bella.

Previously Held

  • Series 7 General Securities 8/16/1986
  • Series 24 Securities Principal 12/13/1988
  • Series 65 Investment Advisor 5/31/1995
  • Series 51 Municipal Securities 2005

I am no longer associated with a broker dealer or FINRA. These are shown only to illustrate experience.