Social Security, will it be there for you, will it be there for me?
Don’t wait too long to learn as much as you can about your Social Security. It could cost you lots of money if you don’t. You need to find out what you can do to maximize your benefits for retirement.
Last evening I attended a seminar on Social Security with a private consulting firm. I now consider that time well spent, a smart investment if you will. It only cost me 1.5 hours of my time.
I learned from the seminar some facts, information significant in helping me make the decision when I should retire and when I should not.
I am 62 years young. Baby boomers born between 1943 thru 1954 can collect full benefits at the age of 66. I also learned that those born within this same period will not be affected by Social Security reform. However, if I wanted to retire and apply (file seems like the right word here) for benefits earlier than the age of 66, I learned what percentage of the full benefit I would receive. This is the key factor, obviously, in deciding when to retire. Here are the breakdowns at each age beginning with 62:
62 I would receive 75% 63 80% 64 86.7% 65 93.3% 66 100%
Every year you delay applying for your S.S. benefits you earn delayed credits.
at 67 I would receive 108% 70 132%
One important point: If you retire and draw your benefits early, say at 62, you stay at 75% for life. When you reach 66, the benefit does not go up to 100%, it remains at 75%.
The figures above work for those of us born between 1943 to 1954. Doesn’t look like I will be retiring anytime soon, unless I win the Powerball Lottery. It looks like there is plenty of incentive to wait until 70……….ugh! I doubt I have the patience to put it off that long. I have other interests besides working everyday. There are other factors that will determine when we apply, like our health, other supplemental incomes, etc.
I would encourage you, if you haven’t already, to attend a seminar. Each of us have different situations. The seminars touch on much more than I have mentioned here. They will give you tips on other points or ways you can increase your benefit. When you just walk into the S.S. office to apply, they are not going to share these tips like a private consulting firm will. The sooner you learn how to take more advantage the better off you will be. Its your retirement, your future. I am not a financial planner or a consultant for that matter. I wanted to share with you what I learned. You may already know what I mentioned here, but there is still much more for you to learn.
I knew a little prior to this meeting, but there was a lot I did not know. I already feel better prepared, more comfortable on what to do when that age approaches. So will you.