If you live in Dyer and you are nearing retirement age or are interested in planning for your future, you may have a lot of questions about your Social Security benefits and when you should retire and start collecting benefits. How you answer this question is important; the age at which you start collecting your Social Security benefits will no doubt have a significant impact on your life, and can affect the amount of money that you collect from the Social Security Administration over time. As you think more and more about retirement, consider the following regarding how when you start collecting your Social Security benefits in Dyer may affect you:
The Social Security Administration has set a “full retirement age” for every person; your full retirement age depends on when you were born. Typically, it is between age 65 and 67. However, you are allowed to retire, and begin collecting your benefits, before or after you reach your full retirement age. You may begin collecting your benefits as early as age 62, or as late as age 70.
Just because you are allowed to start collecting your Social Security retirement benefits at age 62 does not mean that you should. In fact, waiting until you reach your full retirement age to start the collection process is typically ideal, with the exception of situations in which the person is facing a serious health crisis and may not have many years of life left. When there is a question of longevity, collecting benefits early can prove helpful.
Claiming your benefits early typically is not advised because when you claim your benefits early, your monthly benefit amount will be reduced in order to account for the number of additional months for which you will be collecting benefits. For example, if your full retirement age is 66 and your full Social Security benefit is $1,300, and you begin collecting your benefit at age 62, your benefit award will be reduced by about 25 percent, which means that you will only be able to collect $975 of the full $1,300.
If you wait until after your full retirement age to begin collecting benefits, on the other hand, you may be eligible for an eight percent increase per year you wait (up until age 70). As such, if you were eligible to receive $1,300 at age 66, by waiting until age 67, you could $1,404. This will increase for every year up to age 70. The difference between $975 and $1,404, especially over a 20-year time period, is huge!
If you are ready to learn more about when you should begin claiming your Social Security benefits, you should sign up for a free Social Security workshop near Dyer today. At Harvest Social Security QA, we are committed to providing educational information regarding Social Security benefits, and how to receive the maximum benefit amount possible. Reserve your spot online today.
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