In a recent survey, 60 percent of workers aged 55 and older gave an incorrect answer when asked the age at which they will become eligible for full Social Security benefits, according to the Employee Benefit Research Institute.
Not only is it important for you to know when you become eligible, it’s also important to understand the implications of taking benefits early, at full retirement age, or later.
Under current rules, according to the Social Security Administration, individuals born in 1937 or earlier qualify for full Social Security benefits at age 65. The age for full benefits ratchets up for those born between 1938 and 1942. Full-benefit age then rises to 66 for those born between 1943 and 1954, and it increases incrementally for those born between 1955 and 1959. Individuals born in 1960 or later will qualify for full benefits at age 67.
People who retire before reaching their “full retirement age” can choose to take a reduced Social Security benefit starting at age 62 or can delay benefits up to age 70 and receive a higher payout. Before deciding which option is appropriate for you, consider the following.
· If you choose to delay benefits, you’ll have to rely on your savings for income during the early years of your retirement. This could deplete your portfolio and reduce your returns in later years.
· If you are in good health and have family members who lived well into their 80s and 90s, delaying benefits may provide you with a greater lifetime Social Security benefit. If you’re in poor health or have a history of illness in your family, it might be wise to take benefits early.
These are just some of the factors to consider when determining when to start taking Social Security benefits. Call so we can discuss the timing that is appropriate for you.