As you work toward your retirement goals, one of the most important decisions you’ll make is determining at what point you should start taking Social Security. Why? Because the age you begin taking benefits can significantly impact your benefit amount.
You can start taking benefits as early as age 62, but many people end up waiting until what’s considered “full retirement age,” at 66 or 67. If you choose to start early, that could result in your monthly check being reduced by as much as 30%, because the longer you receive those government benefits, the less you get per month. The maximum Social Security benefit is offered at age 70. (your benefit amount won’t increase after that)
So, how do you decide what age is best to apply for Social Security?
Everyone’s situation is unique, and there are lots of questions to consider:
- How long do you think your retirement will last (based on your life expectancy)?
- Do you plan to continue working in retirement?
- What other income sources do you have?
- Will your retirement income be taxable or tax-free?
- How will your Social Security decision impact your spouse’s benefits?
It’s a complex calculation, and your specific needs and goals need to be a part of the equation. But, you don’t have to figure it out alone! Our firm has helped hundreds of people through this same process. Let’s find a good time to connect to review your situation and determine the best way to maximize your benefits to help you make the best decision for you, your family, and your financial wellness.