Strategies for Maximizing Social Security Benefits

Alexander Joyce serves as president and CEO of ReJoyce Financial, a retirement planning firm located in greater Indianapolis, Indiana. As a registered National Social Security Advisor (NSSA), Alexander Joyce provides client education on how to maximize social security payouts.

To determine what you will receive from social security, the government calculates your income through your 35 highest-earning years and develops a payout system based on the age at which you retire. This means that a person with only 30 working years may need to work an extra five. Otherwise, the implied five years of zero earnings can decrease your average significantly.

Adding work years can also improve your payout levels by delaying the age at which you first start receiving benefits. Just as you can choose to receive smaller checks if you retire between age 62 and your full retirement age, which ranges from 65 to 67 depending on your birth year, you can increase your benefit if you work longer. For each year past full retirement age that you work, up to the age of 70, you receive approximately 8 percent more in benefits.

If you are married or divorced, must also consider spousal benefits, which equal half of a partner's retirement benefit. Widowed individuals can receive the full amount of the spouse's benefit, depending on whether he or she chooses to take the payout. Since these totals can change based on when you and/or your spouse take benefits and how long each of you work past the age of collection, you may wish to consult with a financial professional to determine what would be best for your individual situation.

Shifting Retirement Portfolio Strategies to Less Aggressive Holdings

Based in Carmel, Indiana, Alexander Joyce engages with ReJoyce Financial as president and CEO and provides dedicated retirement planning solutions that span all aspects of maintaining a properly diversified portfolio. Alexander Joyce and his team emphasize sensible approaches tailored to the distinct needs of retirees and those who are still planning to retire.

A key distinction emphasized by Mr. Joyce is that, for retirees, growth-focused portfolios are less attractive, as they involve elevated risks. At educational seminars he poses the fundamental question of how much of a hit would people be willing to take on their hard-earned nest egg, should the stock market plummet in the near future. 

One way of looking at this is not simply to ask how much money would be required to return to 100 percent of one's previous net worth, but how much time this will take. Time is one asset that many retirees are lacking, and a blow to assets can significantly impact enjoyment of life during the retirement years.

A proper strategy following retirement involves a transition to less aggressive holdings that are more predictable and reliable. This not only helps ensure adequate money for lifestyle needs, but secures long-term care and health care when it is most needed.