You’ve been paying into Social Security for decades. Now, you’re mulling the question: When should I start collecting?
This is about more than the size of your checks. It’s also about timing this important part of your financial foundation so that it facilitates the life you want in retirement. Whether you want to travel, help family, or support causes close to your heart, how you answer this question will impact the rest of your plan.
Understanding how your age factors in
Early retirement (age 62)
If you choose, you can start taking Social Security benefits at 62. The trade-off? Your monthly payment will be permanently reduced – possibly as much as 30%. For some, the peace of mind that comes from having that income ASAP outweighs the downside of a smaller benefit. Receiving this monthly income early might allow you to step away from work, focus on your health, or help a loved one.
Full retirement age
Your full retirement age – between 66 and 67, depending on your birth year – is when you are eligible to start receiving 100% of your earned benefit. This is the “baseline” you’ve built through your highest 35 years of earnings.
Delayed retirement (up to age 70)
If you elect to wait beyond full retirement age to start receiving Social Security payments, you can increase your monthly benefit by about 8% each year, up until age 70. Those increased benefits can be a big help if your desire is to maximize income for later years or create a stronger legacy.
A few key reminders
- Your monthly benefit will be based on your highest 35 years of earnings.
- You can review your projected benefits anytime at ssa.gov.
- What you decide here can impact your family’s long-term financial security.
- Other factors should be considered – like income from other sources and how you’ll draw from various retirement accounts. It’s important to understand your 401k options as you near retirement.
At Meriwether, we don’t just run the numbers and recommend the highest paycheck. We take a holistic view. We consider your goals, your values, and the bigger picture of your retirement plan.
In truth, this question transcends, “When should I start getting Social Security?” It’s more about making the decision that’s best for you and those you care about.
If you’d like to talk through your Social Security options in more detail, we’d love to have that conversation with you.
Understand why estate planning matters here.
This content is for educational purposes only and should not be considered personalized financial advice. Please consult with a qualified financial professional to discuss your specific situation and needs.