There’s a lot of buzz around Social Security nowadays. A recent study by the Board of Trustees shows that Social Security Reserves could be depleted by 2034, causing many to worry that Social Security won’t be nearly as beneficial to them as it was their predecessors.
Regardless, the fact remains that Social Security is still a CRUCIAL part of your retirement. For some, the funds drawn each month will make up a significant portion of their income. It’s important to get Social Security right. Are you wondering “when should i start taking social security” ? This article might help.
The amount you withdraw monthly from Social Security depends on a number of factors, including when you choose to begin withdrawing it. How do you know when the best time is to begin drawing Social Security benefits?
Currently, the normal retirement age is 66 years and 4 months. At this time, you can begin withdrawing 100% of your monthly social security benefits. However, you are eligible to start withdrawing Social Security Benefits at age 62, with a 25% decrease to your benefit. Conversely, if you wait until age 70, you get a credit for late retirement up to 32% more per month. Here’s an example: a woman that would draw a $1,000 monthly benefit at her normal retirement age of 66 would draw $750 a month if she draws early at 62 and $1,350 a month if she waits until 70 to begin collecting.
In other words, delaying your start of Social Security could be really beneficial in the long run.
However, there are other factors to consider:
- Is your current monthly income enough to hold you over until you begin withdrawing Social Security? Can you afford to wait?
- Is your health conducive to longevity of life? Waiting to claim benefits doesn’t break even with claiming early until your mid-70’s, so if you don’t think you will live to your mid-70’s, it may be worth it to claim early.
- Your spouse. Claiming early decreases spousal benefits, while claiming late increases them. However, your spouse’s benefits may be greater than their spousal benefits, so it may be beneficial for a wife to claim earlier than her husband, or vice versa.
These are just a few highlights, but there are many other factors to consider when deciding when to claim Social Security to maximize your benefits. To help, we’ve created this FREE Social Security calculator that you can find here. For more in-depth guidance, come by our offices or schedule an appointment with one of our experts.
In case you missed it, here’s the FREE Social Security Calculator.
