With the unfortunate rounds of layoffs in the past year, many retirement age folks who were not intending to retire have been forced into that decision or to go job hunting. We have been asked over and over again “is this the time to start my Social Security payments?” While we have spoken and written on this matter in the past, it is a very real issue at the present time. Below please find my thoughts and analysis on the subject:
Research by the Federal government indicates that Social Security retirement benefits make up almost 38% of the income of Americans age 65 or older. Thus, the decision as to when to begin to take Social Security retirement benefits is an important one. It’s also an irrevocable decision. Once you decide to begin receiving Social Security retirement benefits you cannot change your mind. The initial benefit will serve as the “base” amount for the rest of your life, subject only to adjustment for increases in the cost of living.
The question is made a little easier to answer if you separate when you want to retire from when you want to begin receiving Social Security retirement benefits; these two events don’t necessarily have to occur at the same time. An understanding of how your benefits are calculated, how they are taxed, and what happens if you continue to work after beginning to receive benefits, is also important.
7 Comments
My wife died in June, 2006 at the age of 55. I am now 59 years old. Am I able to received any S.S. benefits when I reach 60 years old? If so, when and when do I applied?
can you start recieving ss before i turn 65…
Yes, as a general answer you may receive reduced benefits starting age 62 if you qualify. The amount of time you worked, annual wages earned as well as multiple criteria will determine if and when you may begin to collect your SS benefits. Each year Uncle Sam provides all working Americans who will qualify for benefits an annual statement- I suggest that you refer to yours to determine if you may qualify for your early, reduced payments. If you have any questions, it’s best to visit your local SS Benefits Office in your area for a defined answer and description of benefits.
if i collect social security at age 64,when i turn 65 will i get my full amount when i turn 65?
The SS Administration has a little known rule: if you take benefits early (pre 65, if this is your full retirement age), you can repay all the money you collected and then apply for the higher amount. Read up on this rule, and speak with your SS office to get clarification.
I am 62 years old and just stopped working. If I wait to collect a social security payment till age 64 even though I do not work, will I receive the 62 yr old amount or the 64 year old amount?
You will receive the payment calculated by SSA based on your work history and calculated to age 64 as a percentage of your full payment at age 65 or 66. Check your last SS annual statement which should give you an estimate based on their calculations. Enjoy your retiretment!!!