What Is The Best Age To Claim My Social Security Benefits?
With millions of Public Sector Baby Boomers retiring over
the next 20 years, deciding on when to take your Social Security income
benefits at the right age will be front and center as you plan your
financials. Picking the right the right
time to take your benefits will be one of the biggest financial decisions
you’ll ever make. In fact, the #1
question that my clients have asked me over the the past several months is When
Is The Best Age To Start Taking My Social Security Benefits? My initial answer
always is…It depends!
To help you make the best possible decision when it comes
to claiming your Social Security benefits, here are some important questions to
ask before deciding on the right age to claim your benefits:
What are the crucial Social Security ages I should pay
close attention to?
Should I claim benefits even if I’m working?
What’s my life expectancy?
Will my decision to claim benefits affect my spouse?
How do I get the maximum Social Security income possible
& what’s the best age to start taking benefits?
What are the Crucial Social Security Ages I Should Pay
Close Attention To?
Age 62 is the earliest you can start taking Social
Security benefits. Even though you can start pulling income from Social
Security at age 62, most of you will get more total income during your lifetime
by waiting until you’re age 66 or over.
If you do start taking benefits at age 62, you’ll get a smaller monthly
payment, but for a longer time over your lifespan.
Age 66 is the
Full Retirement Age (FRA) for millions of Government Baby Boomers. For many of
you, age 66 could be the best age to claim your Social Security benefits. If you were born between 1943 and 1954, you’ll
get 100% of your Social Security income benefits at age 66 (source: www.ssa.gov).
Age 70 is the
oldest you can be to start pulling Social Security benefits. If you wait until age 70, you can get up to
132% of your Full Retirement Age (FRA) income benefits. For many of you with a small pension, age 70 may be the best age to claim Social Security
and by waiting, you can maximize your monthly income amount.
Should I claim benefits even if I’m Still Working?
If you’re still
working and claim benefits before your Full Retirement Age, you Social Security
Administration will penalize you for any income over your yearly earnings
limit. According to the Social Security
Administration: “If you are under Full Retirement Age for the entire year,
we deduct $1 from your benefit payments for every $2 you earn above the annual
limit. For 2015 that limit is $15,720. Also in the year you reach Full
Retirement Age, we deduct $1 in benefits for every $3 you earn above a
different limit. In 2015, the limit on your earnings is $41,880 but we only
count earnings before the month you reach your Full Retirement Age. (In
You can read more
about Getting Benefits While Working at http://www.socialsecurity.gov/retire2/whileworking.htm
What’s My Life Expectancy?
How long you’re
expected to live is a major determining factor when deciding on when the best
age to take your Social Security benefits is.
Of course, things can happen to us at any age, but a fairly reliable
guide is to look at family history. Are
your parents still living? If so, what
is their quality of life? If you’re
going to stick to the hard statistics, then consider this:
A 65 year old
male is expected to live until age 84 (and three months)
A 65 year old
woman is expected to live until age 86 (and six months)
If you’re
married, taking Social Security benefits before your Full Retirement Age is a
decision that should be made carefully.
For example, consider this scenario: Let’s say you’re 65 years of age
and your spouse is 62. You plan on
retiring soon and will immediately begin taking your Social Security benefits. Here are a couple of things to keep in mind:
Health insurance –
Since you’re 65, once you retire you’ll be immediately eligible for Medicare. However, if your spouse was on your
employer’s health plan, he or she will have to either stay on that same
employer’s plan for 18 months (through COBRA), or get private insurance either
on or off the health insurance exchange.
You could be looking at an enormous jump in monthly health insurance
premiums, so just be aware.
Higher Income
Benefits for your spouse - Let’s say by taking your Social Security benefits at
age 65 that your wife or husband’s spousal benefits would be $650. By waiting until your Full Retirement Age (age
66) – your spouse’s benefits would jump to $1,075. By waiting until your FRA, your spouse will
get half of your income benefits. Taking
benefits earlier than age 66 likewise reduces spousal benefits.
Higher Income for
your surviving spouse – The longer you wait to claim benefits, the larger your
spouse’s benefit will be.
How
can I get the maximum Social Security income possible & What’s the
Best Age to Start Taking benefits?
There’s simply no
substitute for a thorough Social Security benefit analysis based on your own
unique situation. So to get your
customized Social Security Maximization Report, just CLICK HERE
Securities and advisory services
offered through Ausdal Financial Partners, Inc. Member FINRA/SIPC 5187
Utica Ridge Road Davenport, IA 52807 563-326-2064 www.ausdal.com. Public Retirement Planners, LLC and Ausdal Financial
Partners, Inc. are separately owned and operated.
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