Ways to Get the Most our of Your Social Security

You may begin receiving your Social Security retirement benefit as early as age 62. But by delaying the beginning date,  you can receive a check that is estimated to be 8 percent higher for each year you delay receiving your benefit, to a point.

The facts

Full retirement age. If you were born between 1943 and 1954,  you will reach your full Social Security benefit payment at age 66. 

Early benefit drawbacks.  You may also start receiving your benefit at age 62. However, starting your benefits before reaching your full retirement age will reduce the amount paid to you permanently.

Bonus payment. Great news!  You may receive a bonus for each year you delay receiving benefits past your full retirement age. Your Social Security benefit is increased by a whopping 8 percent per year.

The maximum amount. After age 70, the Social Security benefit is maximized. There is no reasoning to delay further as starting your benefits later adds no additional payments.

Is it worth it to delay collecting benefits?

There are a few reasons for delaying receiving your Social Security benefits until you reach age 70:  Hint…reach for your magic crystal ball!

You expect to live longer. If your family has a history of longevity, you may want to delay your initial Social Security benefits. 

You don’t need the income. If you are still working or have alternative income sources, it may be better to delay your benefits. 

Your spouse has passed. You will need to review the possibility of receiving survivor benefits based on your spouse’s earnings. Later, you could then start collecting your own Social Security retirement benefits based on your earnings.

Your benefits are taxed. If you have other income, your Social Security retirement benefits could be subject to income tax if you are not yet at the full retirement age.

Should you delay receiving your Social Security benefits? That’s a tough question!  Weigh all your options carefully before making this important decision!