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.
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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.
"Social Security is incredibly complex, and most people miss out on tens of thousands of dollars in benefits because they don't have anyone to help them figure out the best way to claim," says Christopher Jones, Financial Engines chief investment officer. "By considering Social Security in combination with your 401(k), you can unlock hidden value and dramatically increase your retirement income."