Page 18 - Book12E

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
—Paul Samuelson Read
10
Women do very well under Social Security for three primary reasons. First of all, Social Security's progressive benefit formula gives those with low and moderate incomes a better return relative to their contri- butions. Secondly, Social Security benefits cannot be outlived. Finally, Social Security benefits increase every year to help meet rising costs of
living. Since women tend to live longer than men, these protections are especially important.
Divorced spouses might not be adequate- ly protected under a system of carve-out accounts. Social Security provides survi- vors and retirement benefits to a woman who was married for at least 10 years to the worker. His benefits and those of his
current dependents are not reduced. An individual account would likely be divided up at the time of divorce.
Q . When should I consider claiming my Social Security benefits?
A. One of the most important decisions you will make in retirement is when to claim Social Security benefits. This decision can make a differ- ence of thousands of dollars for you and your family. There is no one right decision for everyone.
You may claim your Social Security income (SSI), on the basis of your work record or your status as a dependent, as early as age 62 or as late as 70. Anyone who elects to receive benefits as early as 62 will receive a reduced amount for life. For example, assume your full retirement age is 66 (as it is for people born between 1943 and 1954). If you file for benefits at 62, your SSI would be discounted by 20 percent. Thus if you would qualify for SSI of $1,500 a month when retiring at age 66, electing instead to retire at 62 would reduce your monthly SSI to only $1,200 for the rest of your life.
New Views About Retirement