Tax-Saving Opportunities for Your Social Security Benefits

We recently reviewed your financial situation and uncovered an opportunity that could help save money on taxes as you plan to leverage Social Security benefits during retirement.

Social Security is a major source of income for most people aged 65 and older. However, as much as 85% of your Social Security benefit could be subject to federal income tax¹! There are choices to be made that can significantly impact your benefit amount and taxable income, which is why Social Security should be analyzed as part of your overall retirement income strategy by a professional who understands taxes.

When we meet to review your plan for leveraging Social Security, we’ll answer the following questions:

• When should you begin receiving Social Security income to maximize your benefit amount?
• Should you continue to work while receiving Social Security benefits?
• How does a spouse’s income impact your Social Security benefits?
• What cost of living adjustments will be made to benefit amounts?
• How will your retirement income be taxed?

And the key question on everyone’s mind:
With Baby Boomers retiring and benefits to pay out, will Social Security last?

By 2033, the Social Security Trust Fund is expected to be depleted, and revenue will only be able to fund about 77% of program costs². Congress will have to make changes to keep the system going as we know it, either by reducing future benefits, increasing taxes or both. Although there are seven possible sources of retirement income, Social Security is often the base, and changes to today’s program could have a substantial impact on your overall financial plan.

Please call our office at your earliest convenience to discuss your Social Security strategy. We look forward to helping you design a tax-intelligent plan for retirement income.

Best Regards,

Eric Cooper