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Social Security Planning

Alliance Wealth Advisors

Alliance Wealth Advisors is a comprehensive wealth management team that specializes in retirement transitions. With decades of experience in financial planning services, our team brings all of the pieces of the wealth management puzzle together. We build empowering, mutually beneficial relationships with each client we serve. Through client education, our clients gain a powerful understanding of their own financial situation so that they are equipped with what they need to make informed financial decisions on their own behalf. Strategic alliances with our tax team, legal team, and others allow us to create an environment where we can serve our clients in a truly holistic way, touching every part of their financial life. Are your financial, tax, and estate plans coordinated? Find out what authentic financial freedom feels like. Experience the Alliance advantage.

Social Security Planning

Social Security has become part of the retirement plan of just about every worker in the United States of America. For qualified retirees and their families, Social Security provides replacement income. Social security replaces a percentage of what your income was before retirement. Percentages for replacement income are based on the lifetime earnings of the retiree. Social security functions in ways for retirees that other retirement plans cannot. Utilizing sound social security planning strategies allows individuals to maximize their social security benefits and make it a quality piece of the whole financial plan for retirement.

Social Security Planning for Retirement

Planning for retirement is the key to retiring confidently. Numerous factors should be considered; social security planning for retirement is just one of them. It is essential to understand how social security will work for you and your family so that you can maximize its benefits and plan accordingly to create a whole plan. Not everyone is eligible for social security. Social security uses what are called “credits” to determine eligibility for benefits. The number of credits needed to be eligible is determined by what year you were born. Years of work is how an individual accumulates social security credits.

Social Security Planning Services

There are numerous social security planning services available with a financial professional on your side. Make the most out of your benefits and avoid making costly mistakes when it comes to social security planning. Some services include:

  • Filing – Social security planning services include assistance with filing. Having a partner who has experience with social security planning is invaluable.
  • Claim Options – Our financial advisors will help you understand what your claim options are.
  • Streamline – Streamline the process of social security planning by using our trusted financial professional.
  • Spousal Benefits – One of the more intricate details of social security planning includes planning for spousal benefits.
  • Taxes – Understand and reduce tax implications.

Social Security Retirement Benefits

There are many factors to consider when planning to utilize social security retirement benefits. Some include qualification, earnings, and age, what age you will be when you retire, and that social security will not replace all of your income. When you pay income taxes from working, you earn what is called “credits” that go towards earning social security retirement benefits. The number of credits that you need in order to be eligible depends on whether you were born before 1929 or after. If you were born in or later than 1929, you need 40 credits, which is about ten years of work. You will not receive any social security retirement benefits if you have not earned enough credits.

Social Security for Teachers

Many teaching positions do not pay into social security. That is why social security is different for teachers. If they have not earned their own social security credits, teachers can not even claim spousal benefits. Because teachers usually pay into a pension plan instead of social security, frequently, they are not eligible to claim social security benefits. The amount and quality of benefits teachers are qualified to receive depends on the state and county they are in and the type of pension plan they pay into while working in education. Of course, this varies if the teacher has not been only in the field of education their entire working career. 

The world of social security planning can seem overwhelming. Work with a financial advisor to make the most out of social security planning for retirement.