Misty Severi and Social Security: What You Need to Know

In today’s ever-changing landscape of financial planning and retirement, understanding Social Security is crucial. Misty Severi, a well-respected expert in social security and financial planning, offers valuable insights into navigating this essential part of your retirement strategy. Whether you’re nearing retirement age or just starting to plan for the future, here’s what you need to know from Misty Severi.

What is Social Security?

Social Security is a federal program designed to provide financial support to individuals who are retired, disabled, or survivors of deceased workers. Funded through payroll taxes under the Federal Insurance Contributions Act (FICA), Social Security aims to offer a safety net and ensure that citizens have a source of income in their later years or during times of financial hardship.

Key Insights from Misty Severi

1. Understanding Benefits

Misty Severi emphasizes the importance of understanding the different types of Social Security benefits available:

• Retirement Benefits: These are provided to individuals who have reached the eligible retirement age, which varies depending on the year of birth. The age to start receiving full benefits ranges from 66 to 67 for those born after 1954. You can choose to start receiving benefits as early as 62, but your monthly benefit amount will be reduced if you start early.
• Disability Benefits: If you become disabled and are unable to work, you may qualify for disability benefits. Misty highlights the need to have a thorough understanding of the qualification criteria and application process to ensure you receive the support you need.
• Survivor Benefits: In the event of a worker’s death, their surviving spouse or dependent children may be eligible for survivor benefits. Misty advises reviewing your family’s situation and ensuring your loved ones are aware of their potential entitlements.

2. Maximizing Your Benefits

Misty Severi offers several strategies to maximize Social Security benefits:

• Delay Claiming: One of the most effective ways to increase your benefits is to delay claiming until you reach age 70. For each year you delay beyond your full retirement age, your benefits can increase by approximately 8%.
• Spousal Benefits: Married couples can strategize to maximize their combined benefits. One strategy might involve having one spouse claim benefits early while the other delays their claim to increase their own benefit amount.
• Earnings Records: Ensure your earnings records are accurate and up-to-date. Social Security benefits are based on your highest-earning 35 years, so it’s important that all your earnings are correctly reported to maximize your benefit amount.

3. Common Pitfalls to Avoid

Misty Severi warns of several common mistakes individuals make with Social Security:

• Not Understanding Tax Implications: Social Security benefits may be taxable depending on your overall income. It’s important to plan for the tax implications of receiving these benefits.
• Overlooking Survivor Benefits: Many people are unaware of the potential survivor benefits available to their family members. Misty stresses the importance of understanding these benefits and planning accordingly.
• Ignoring Inflation Adjustments: Social Security benefits are adjusted for inflation through Cost-of-Living Adjustments (COLAs). Misty advises keeping this in mind as you plan your retirement, as it impacts your long-term financial strategy.

Conclusion

Navigating Social Security can be complex, but with insights from experts like Misty Severi, you can make informed decisions that will benefit you and your loved ones. By understanding the types of benefits available, strategizing to maximize your benefits, and avoiding common pitfalls, you can better secure your financial future. For personalized advice, consider consulting with a financial planner who specializes in Social Security to tailor a strategy that suits your unique situation.