As you approach retirement age, the last thing that you want to have to worry about is how you will pay for your costs of living, ranging from housing to food to medical care and more, when you are no longer working. In order to ensure that you are as protected from such worries as possible, it is important to understand how when you start collecting Social Security benefits may affect your benefit amount and your financial well being. To learn more about when to start collecting your benefits and Social Security benefits in general, sign up for a free Social Security workshop near Winfield today.
The extent that your monthly benefit amount may be affected is dependent upon your full retirement age. The full retirement age is the age at which the Social Security Administration will pay you your full benefit amount, and is dependent upon when you were born. If you start claiming your benefits before your full retirement age–which you are allowed to do beginning at age 62–then your benefit amount will be reduced. For example, consider a situation in which your full retirement age is 67. If you start collecting your benefits at age 62, your monthly benefit amount will be reduced by about 30 percent per month. If you wait until age 63, the reduction is about 25 percent of your monthly benefit amount.
While collecting early may not be in your best interests depending upon who you are and the specifics of your situation, in general, waiting to collect your benefit is ideal. However, if you can, you should not just wait until you turn your full retirement exchange and you are eligible to recover 100 percent of your benefit amount; instead, you should wait until you turn age 70 to begin collecting benefits. Waiting until age 70 can significantly increase your benefit amount. To be sure, if your full retirement age is 66, you will receive an additional eight percent of your benefit amount, per month, per year that you delay seeking benefits. This means that at age 67, you will receive 108 percent of your benefit amount; at age 70, you will receive 132 percent of your benefit amount! If you live to age 90, you will have received thousands of dollars more than you would have had you started receiving your benefits at age 62.
Of course, not everyone lives to age 90. Knowing exactly how long you will live is impossible; however, if you feel good, have a family history of long lives, and have no serious health complications, you might assume that you’ll make it for another couple of decades. On the other hand, if you are very sick or have a persistent health complication and do not expect to live for very long, claiming your benefits early and having the extra income can be very helpful.
If you want to learn more about your Social Security benefits, we encourage you to sign up for our free workshops near Winfield offered by Harvest Social Security QA. Find a workshop near you and sign up online today.
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