When to Start Taking Social Security Benefits
Social Security benefits were set up to make sure that every American has some kind of retirement income to look forward to. While it is true that the amount Social Security pays is not enough to live off of as a sole source of income, it can be an income to hold you over until your investments mature or to supplement your other retirement accounts.
When should you start collecting your Social Security benefits? The only elder law that is in effect is that you must start collecting your benefits by age 70. But should you wait that long? There are several points at which it makes sense to take your Social Security benefits, but the final decision is ultimately on you.
Age 62
No matter when you were born, the earliest age you can collect social security is 62. It is important to remember that no matter when you decide to start collecting your Social Security, your total amount available is going to be the same. If you decide to start taking your benefits at 62 because you took on a guardianship or have some other need of money, your monthly payments will be smaller than if you waited until age 70. But your total amount of benefits you will be paid is the same.
When you take your benefits at age 62, you are assessed a penalty if you are still working. The penalty varies from year to year, but it winds up being a considerable amount of money if you are still making a full-time income.
Retirement Age
Your retirement age depends on when you were born. If you were born in 1960 or later, your retirement age is 67. This is the point where you can get your Social Security benefits and still work a full-time job. Many people plan on their retirement age Social Security payment as part of their retirement.
Age 70
When you reach age 70, you will be getting the maximum monthly payment from Social Security that is available to you. If you have waited to get to age 70 to get the maximum monthly benefit, then now is the time to sign up for your monthly checks. But if you have not take your benefit yet because you simply do not need it, you should still sign up at age 70.
With a maximum monthly Social Security payment you don’t need, you could send a grandchild or two through college or set up trusts for your children or grandchildren. There is always a way your family can use more money.
We invite you to contact our firm to talk about your Social Security benefits and find out which age is the best age for you to start collecting. Our elder law lawyers can give you breakdowns on other parts of elder law and help you to prepare for your retirement.