When it comes to receiving Social Security, you should know
that you are eligible to sign up for this federal program after you reach the
age of 62. However, the longer you wait to sign up for the program, the larger
your monthly payments will be up until you reach the age of 70. After 70, there
is no point or benefit to delaying sign-up.
If you do decide to go ahead and sign up for Social Security
once you hit 62, you won’t be alone. This is, by far, the most common age to
sign up for the program.With that said, however, more and more people are
finally starting to delay sign-up in order to receive greater benefits.
If you can wait just one more year, to age 63, to claim your
benefits, you’ll be in the minority. And, unfortunately, your claims will still
be reduced, though not nearly as much as a person of 62’s benefits would be.
Up your claiming age to 64, also uncommon, and you’ll
experience a 13.4% reduction in benefits based on a full retirement age of 67.
This is still less of a reduction than signing up at 62 or 63, so hopefully
you’re seeing a pattern here!
What about if you wait for 65? While 65 was once considered
the full retirement age, 66 is now the standard for anyone born between 1943
and 1954. If you were born after 1960, then your retirement age is 67. Either
way, you’ll still see a reduction, but the closer you are to full retirement
age when you file, the lower the reduction.
For 66 year olds, it’s perfectly okay to go ahead and claim
benefits...providing you were born between 1943 and 1954, in which case there
will be no reduction. If not, you’ll see only a 6.7% reduction rate based on a
retirement age of 67.
Speaking of 67, if you choose to claim benefits at 67,
you’re also in the clear, as long as you were born after 1959. If you were born
before that, you’ll not only avoid reductions, but you’ll also see a nice 8%
increase in benefits.
Likewise, 68 year old people can expect to see an
(potentially) even nicer 8-16% increase, depending on when they were born.
69 year olds who were born in or after 1960 enjoy a 16%
increase when they claim their benefits, but those born before are entitled to
a 24% increase.
And finally, if you’re a baby boomer and you can put off
claiming benefits until age 70, you’ll enjoy a whopping 32% increase in funds.
Even if you were born after 1959, though, you’re still entitled to 24% more
than you would be had you claimed earlier.
The bottom line is that benefits are benefits no matter how
you slice it, so while it’s best to hold off claiming them until 70 (or close
to it), do what’s best for you, and you’ll still enjoy some benefits. #RetirementBenefits #Naperville
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