5 Common Blind Spots on Social Security
The Annuity Man
Ginger Szala's excellent article on ThinkAdvisor addresses the 5 common blind spots people have concerning their Social Security benefits.
If you were not aware, Social Security payments are an annuity structure. In fact, I call Social Security the best inflation annuity on the planet because the increases are politically driven. With inflation increases on regular annuities, it's all about life expectancy...not just to appease the voters. In other words, annuity companies don't give anything away like politicians do.
Below are the 5 common blind spots the Ginger Szala covers in detail. You need to read the article by clicking the link in the first sentence above, but I've added my two cents worth below with each "blind spot."
1. Claiming at which age maximizes your monthly earned Social Security benefit?
Just like an annuity, Social Security payments are all about life expectancy. The older you are, the higher the payments.
2. What is the earliest age non-disabled people can receive survivor benefits?
Most people think that the earliest age is 62, but the correct answer is 60.
3. Does a current spouse need to be receiving Social Security benefits for the other spouse to qualify for spousal benefits?
The short answer is yes, but you need to read the article to know the full details.
4. Can divorced spouses receive survivor benefits?
The answer is yes, but the criteria is different and detailed to say the least.
5. Can divorced spouses receive spousal benefits?
I know that you think question 4 and 5 are the same, but they are not. Read closer. By the way, the answer to question 5 is yes.
The good news is that every working American in the country owns an annuity. It's called Social Security. Make sure to do your homework so you can maximize those benefits.