Social Security is the largest and most important income for many retired people but many people do not actually understand the Social Security system. Choosing when to file for Social Security and recognizing different methods, such as file and suspend, can potentially make a world of difference. Finding guidance as to how to go about claiming your Social Security can be difficult though, since many Social Security officers and financial advisors do not guide you to file at a time that will optimize your benefits.

There are many things about Social Security benefits that people do not take the time to learn about. Many people do not realize that their benefits can be taxed or that they are altered for inflation. Also, people fail to recognize that there are different claiming ages that allow you to receive different percentages of your full benefit. For example, at the earliest age of eligibility, only ¾ of your benefits can be received but if you wait until the full retirement age, the entirety of your benefit can be received. If you wait until beyond the full retirement age, you can receive over 100% of your full benefit.

For people who live longer, delayed filing can be very advantageous. There is also another method – file and suspend – in which Social Security can be claimed but then postponed in order to benefit you or your surviving spouse later down the road. Doing your research and filing by the best method and optimal age is important but can be challenging.

Understanding all the different aspects of Social Security benefits can be difficult and expecting a Social Security agent to help will only get you so far. The Social Security Administration can tell you how much you will be paid after a certain amount of time according to when you file but they will not tell you what your best option is. When it comes to making decisions that have such a large impact on your life, you want someone to advise you.

You may think that going to a financial adviser is a good option. However, financial advisors are not always very knowledgeable about the Social Security system. Often times, they get caught up in the politics involving Social Security and do not advise their clients based on their specific needs. They frequently recommend claiming at an age that does not allow the client to maximize their benefits.

For a sufficient amount of help in determining when and how to file can be found by going to an investment advisor who focuses on planning and wealth management. If they are comfortable with Social Security advising, financial advisors will help the clients choose what is best for them, specifically based on their short-term and long-term needs.

There are also some online tools that can be consulted to determine the best way for you to file. Some cost money but it can be worthwhile in the long run.

It is essential to learn about your Social Security benefits and how they are calculated, taxed, filed, and distributed in order to make the most of the benefits you have earned. Help in doing so may not come where it is expected but it can be found and there are people who want to help you do what is best for you.