If you are working and are approaching retirement age, knowing precisely when to retire is a very complicated and important decision. As you think about retirement years, there may be a number of things that you factor into your decision, including how you feel about your job, and how much money you have in savings. Another thing that you should be aware of, however, is how your Social Security benefit amount may be affected by the age at which you start claiming benefits. If you live in Schererville and are interested in learning more about when you should start collecting Social Security benefits, we urge you to attend one of our free workshops hosted by Harvest Social Security QA.
Did you know that if your start claiming your Social Security benefits early–that is, before you reach full retirement age–your monthly benefit amount will be reduced? The same is true for a spouse who begins claiming benefits on their partner’s record. To be sure, consider a situation in which your full retirement age (the age at which, if you start collecting Social Security benefits, you will receive 100 percent of your benefit amount) is 66:
Your full retirement age is 66, but you decide to start claiming benefits at age 62. As such, your benefit amount is reduced to 75 percent of what you would collect if you wait until age 66. If you are the spouse of a person whose full retirement age is 66 and you start receiving benefits at at age 62, you will only receive 35 percent of the monthly benefit amount (instead of 50) that you would receive at age 66.
Just as a benefit amount may be reduced if you claim your benefits before your full retirement age, so may your benefit amount be increased if you wait until age 70 to start claiming benefits. This is called the delayed retirement credit, and can actually result in you receiving thousands of dollars more overtime than you would if you claimed your benefits beginning at age 62, depending upon how long you live for.
While the amount of money that you will receive overtime, and the amount of your monthly benefit amount, is certainly one of the most important things to consider, it is by no means the only thing to consider. In addition to these things, you should also think about your health, other sources of income or savings you have, how long you think you will live (based on health, genetics, etc.), and whether or not you want to continue working or want to retire, and then need to start claiming benefits as such.
If you want to learn more about when you should start collecting Social Security benefits and you live in Schererville, attending one of our Social Security workshops is a smart idea. You will learn dozens of things regarding Social Security benefits and when to start claiming retirement, and workshops are held without any charge to attend. Register online today!
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