Social Security and FAFSA
My retired husband is 62 and is considering collecting his Social Security now. His pension retirement income is around $50,000 per year, and I still work. Our daughter will be a senior in high school in the fall and we will need to fill out our FAFSA form. Will collecting Social Security hurt her chances of getting more financial aid? Will collecting Social Security early hurt his retirement.
Thank you!
Terry Says
Definitely he should NOT start collecting SS now!! It will deeply hurt both his retirement and your financial aid for college!!
He should wait until he reaches his full retirement age — about 57 — before collecting SS for this basic reason: He will lose out on an 8% ANNUAL increase in his base pay if he takes SS early. He should either take on other jobs to earn more, or delay his retirement!
AND, since SS income will be counted as your income for FAFSA purposes, he definitely doesn’t want to do this for the next four years anyway!!
GET SOME GOOD RETIREMENT PLANNING ADVICE AT www.Wealthramp.com before you make expensive long-term mistakes!!
