NEW YORK (MainStreet) Ask a financial advisor about investing, planning for retirement or developing a savings strategy and watch the pie charts, income simulations and risk/reward scatterplots start flying across the desk. Ask that same advisor when to start taking Social Security benefits crickets.
The challenge is determining how to gain maximum after-work income while retaining your retirement savings as long as possible and provide the highest surviving spouse benefits. With all of the options available to a pre-retirement married couple, that can mean the consideration of thousands of possibilities.
According to Financial Engines research, seven out of ten current retirees say Social Security benefits are a major source of their retirement income, while the Social Security Administration says about one in four married couples -- and nearly half of unmarried individuals -- rely on Social Security for 90% or more of their income. So knowing when to trigger Social Security benefits for maximum income is a major decision. Financial Engines has developed a free online planning tool that crunches the numbers for you.
By entering birth date and income information, users can develop either an individual or household strategy to determine when to trigger Social Security benefits. Accounting for multiple income sources and the life expectancies of both spouses in a married household, the tool analyzes the most efficient deployment of earned benefits, as well as spousal and survivor benefits, then provides a printable action plan for when to file with Social Security for each benefit.