The Ins and Outs of Social Security Benefits: What Every Retiree Should Know

Social security is a tricky subject that often fools even the most diligent, find out how to protect yourself and arm your benefits with knowledge

Spin the Wheel: When to Start Collecting Social Security Benefits

One of the biggest decisions in the Social Security game show is when to start collecting your benefits. The game starts at age 62, but wait - there's a catch! The longer you wait, the bigger your monthly benefits. Hold off until your full retirement age (somewhere between 66 and 67 for most folks), and you'll nab 100% of your benefits. If you can keep those itchy hands off until 70, your prize grows by 8% each year you delay. So, is it patience or quick draw for you?

Lightning Round: Understanding the Earnings Test

Working while collecting Social Security benefits? Then, you're in the lightning round! Here, your earnings could potentially reduce your benefits. But don't hit the buzzer in panic! This only applies if you're under full retirement age, and it's not a loss but a deferral - you get those dinged benefits back once you hit the full retirement age. But beware, contestants, the rules can be as slippery as a game show host's hairdo, so stay informed.

Risk or Reward: Taxing Social Security Benefits

Just when you thought you’d won the game, in walks the taxman. Yes, dear players, some of you may have to pay taxes on your Social Security benefits. The key to this puzzle is your "combined income" - that's your adjusted gross income plus non-taxable interest plus half of your Social Security benefits. If that sum is above certain thresholds, you might just have to share your prize with Uncle Sam. But remember, knowledge is power, and good tax planning can keep more cash in your pocket.

Double or Nothing: Spousal and Survivor Benefits

Here's the surprise round. If you're married, divorced, or widowed, you could be eligible for spousal or survivor benefits. Essentially, it's like getting a chance to play Double or Nothing. Spouses may claim either their own benefit or 50% of their partner's benefit, whichever is higher. If you're a survivor, you can claim your deceased partner's full benefit. And for the divorcees, you can claim spousal benefits if the marriage lasted at least 10 years, and you haven’t remarried before age 60. It's like the game show plot twist that can change everything!