As the world, and some areas of the U.S., begin to reopen their economies, we can look forward to a time when the entire economy is up and running again. But in the meantime, the government has passed legislation to help small and medium-sized businesses and hospitals, as well as temporary tax relief measures to help businesses and individuals.

It’s important to note that an economic downturn can affect those nearing and in retirement differently – and worse – than most others. That’s why it’s important to have a solid plan in place that can weather any financial storm. If you’ve lost your job, been furloughed, or are a business owner whose business has suffered because of the shutdown, you might need to rethink and update your plan.

If you’ve lost your job and think you might be facing an early retirement, you might be rethinking your Social Security claiming strategy. If you think you need to claim earlier than you originally planned, keep in mind that you have one year after claiming to suspend benefits. If you find another job in the next year, you can repay your benefits and go back into deferral. This way you can still receive a larger monthly benefit by delaying your Social Security benefits. There are so many ways to claim Social Security, and a qualified financial advisor can help you decide or update your strategy.

Here are some alternatives to claiming Social Security for immediate funds:

  • Find out when you will receive your $1,200 economic stimulus payment if you are supposed to receive one.
  • Apply for unemployment insurance. You will receive an extra $600 a week on top of federal payments for up to 4 months, even if you are self-employed.
  • Ask for a loan from a family member of up to $15,000, which is the amount someone can gift tax-free per year.
  • You can take out money from your retirement account penalty free in 2020 and either return the money or take 3 years to pay the tax on the withdrawal.
  • Should you wait to claim Social Security?
    • Your benefit increases by 6-8% each year you delay claiming, up to age 70.
    • If you claim benefits and then decide you want to undo it, you can suspend it and claim a larger benefit later on.
    • You could receive a reduced benefit if you work while taking Social Security benefits.

If you’re looking to update your Social Security claiming strategy, take advantage of tax relief legislation, or revise your overall retirement plan, we can help. Whether you’re in or nearing retirement give us a call at (855) 425-4566. Or click here to sign up for a complimentary financial review so we can get started on a plan to suit you and your unique financial planning needs.