Lee Ann Torrans Social Security Strategies
Single, unmarried people have much less flexibility than married individuals in terms of Social Security benefits. Deferring taking their benefits for as long as possible is their best option. Taking benefits at 62 can compromise long-term retirement security. Nine out of 10 Americans aged 65 or older receive Social Security. Roughly 22 percent of married couples and 43 percent of unmarried people rely on Social Security for 90 percent or more of their income.
The Social Security Administration in 2011 provided benefits totaling $727 billion to about 55 million Americans. Retired workers received an average monthly benefit of $1,181.
Lee Ann Torrans Benefits of Good Social Security Strategies
Social Security income is taxed by the federal government and some states. Pennsylvania does not tax Social Security benefits. West Virginia does impose a state tax on the federal benefits.
For federal tax purposes, Social Security is only taxed if the income from all sources, plus half the Social Security benefit is greater than $32,000. If someone’s total income — excluding a Roth IRA — passes $32,000, Social Security income is taxed.