Social Security Planning

Social Security must be carefully considered when developing your retirement plan. We aid in break even analysis as well as Cost-Of-Living Adjustments (COLA) so that you can maximize your benefits.

Understanding Social Security Benefits As You Enter Retirement

Unfortunately, many make the mistake of thinking that Social Security is all they need in order to make it through retirement, but the truth is that this is only one small component of what the ideal retirement plan looks like.

Social Security comes with many benefits, but to begin understanding them, you should know what Social Security is to begin with. Social Security replaces a portion of your pre-retirement income based on your highest 35 years of earnings. On average, American beneficiaries receive 40% of their pre-retirement income, so knowing what this amount is will greatly affect the rest of your retirement plan.

Social Security Break Even Analysis 

Breaking even in terms of Social Security refers to the age at which the amount you receive if you claim your Social Security benefits at a later age is equivalent to the amount you would have received if you claimed your benefits earlier. It’s important for us to help you calculate your “Break-Even Age” in order to properly time when you should claim your benefits because, in general, the longer you wait to claim those benefits, the more money you will receive every month once you retire. 

Cost Of Living Adjustments (COLA)

A Cost Of Living Adjustment is an increase in your Social Security and Supplemental Security Income benefits as a way to counteract inflation, which is measured utilizing the Consumer Price Index. 

Social Security benefits are based on what is known as a Primary Insurance Amount (PIA), which is the amount someone would receive if they decide to claim their benefits at their normal age. The PIA is dependent on the COLA, so as these Cost-Of-Living Adjustments increase, so will your PIA, and so will your benefits. This means that, if you retire earlier than the normal retirement age, your benefits will be lower and if you retire at a later age, your benefits will be higher.

Benefits Continuation Reports

As you embark on your retirement journey, you may find that your plans change over time, so your benefits might change as well. Our financial advisors will gladly offer benefits continuation reports so you are well informed on your benefits and how to get the most out of them at all times.