With millions of public sector Baby Boomers retiring over the next 20 years, deciding on when to take your Social Security benefits will be front and center when planning for retirement. Picking the right age to take your benefits will be one of the biggest financial decisions you’ll ever make. In fact, one of the most frequent questions my clients ask me is what the best age is to begin taking Social Security. The answer of course depends on your individual circumstances.
To help you make the best 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:
1. What Are the Crucial Social Security Ages I Should Pay Close Attention To?
2. Should I Claim Benefits Even If I’m Still Working?
If you’re still working and claim benefits before your Full Retirement Age, the 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.”
You can read more about getting benefits while working at www.socialsecurity.gov/retire2/whileworking.ht
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 reasonable guide is to look at your family history. Are your parents still living? If so, what is their quality of life? If you just want to stick to the hard statistics, then consider this:
To check your life expectancy, simply CLICK HERE.
If you’re married, taking Social Security benefits before your Full Retirement Age is a decision that should be made with extreme caution. 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:
There are a number of Social Security benefit claiming strategies available that will help you and your spouse make the best decision, and the bottom line is there’s no substitute for a thorough benefit maximization analysis based on your unique situation. So to help you get the maximum income benefits you’re entitled to, simply CLICK HERE to learn how to get your own, customized Social Security benefit analysis.
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.