Daily Dupaco

There is a gentleman I know…at least I’ll refer to him as a gentleman. Though retired, he continues to do contracting work on the side. For lunch he’ll often visit a certain convenience store offering a special of two hot dogs and drink for $2.99. He refers to this culinary concession as a “no-brainer!”

Unfortunately, the decision to take Social Security may not be as simple. There are a lot of different illustrations and scenarios being cast out as tools on how to more effectively capture the benefits of our largest welfare program, Social Security. Many questions persist such as, when do we file? Do we file and suspend? Should we wait until full retirement age? When is full retirement age? What is the rate of increase? Are the benefits taxable? What is the breakeven point?

These are very good questions. However, the bottom line is that these benefit illustrations are meant to be used as a guide, not as a rule. As with anything so personal, each situation presents different challenges from a planning perspective. The fact is Social Security should help fill the income void, which could not otherwise be maintained through retirement (i.e. old age), disability or death. In planning for Social Security, the need is obviously going to influence the decision.

One thing is certain, if you can pay off debt and save money prior to retiring, Social Security will feel a lot more secure and you can be a lot more social. Please contact us at (563) 557-7600 / 800-373-7600, ext. 211, with any questions about Social Security planning and how it might impact your retirement.

By Michael Poppen