Perhaps you are close to the time to collect Social Security or someone in your family is nearing the eligible age. The question many people have is how much they can expect? The answer can be complex.
You may take a tax hit based on where you live. States have different rules on how they treat this income. Your other retirement income may cause you to exceed certain limits and that results in a reduction in your take home amount.
For example, Alaska does not tax social security but other states may tax the full amount or take a percentage.
Your other income could also reduce benefits. For example, if are a single filer and you have another job, any income you make over $25,000 will result in a reduction of social security benefits.
Lastly, when you elect to receive benefits will directly affect the amount you receive. Technically you can claim benefits around 62 but the longer you wait, the more you will receive. There are many factors in making the decision to elect to take benefits and you should carefully review this with an advisor who understands your financial situation and the laws associated with social security.
To find out more, visit the social security web site here.