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Waiting Is Sometimes Best |
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They say good things come to those who wait. So, rather than start collecting Social Security benefits as soon as you're eligible, you may want to consider the advantages of pushing those payments off for a few years. Under the current Social Security rules you can:
- Retire at full retirement age, which ranges from ages 65 to 67, depending on the year in which you were born and collect full benefits.
- Start collecting Social Security as early as age 62 and receive reduced monthly payments.
- Defer Social Security benefits up to age 70 to increase your monthly payments.
In general, experts say that for every year you defer payments beyond full retirement age, up to age 70, your monthly benefits could increase by 5% to 8%. You can crunch the numbers yourself using the benefit calculator at the Social Security Administration's web site, www.ssa.gov. Click on the "calculate your benefits" link under the "Retirement" heading on the homepage.
When are Americans deciding to take Social Security? According to a November 2007 study entitled Boomers Ready to Launch from the MetLife Mature Market Institute, there's a pretty even split between baby boomers set to turn 62 in 2008. Of those surveyed, thirty-one percent said they plan to apply for Social Security when they turn 62 and 32 percent said they will wait until age 66 or beyond when they can receive full benefits.
Survey respondents who said they will take benefits at age 62 reasoned that it’s in their financial interest to take Social Security sooner. Some said they need the money right now; others fear there will be nothing left in the system if they wait, according to the study’s press release.
To decide when to collect your benefits, consider your life expectancy, your current health status, and whether you can afford to live without Social Security for a few extra years. We’ll be happy to discuss your options with you.
©2009, Kelly Ruggles, Spokane, WA. Web site
Kelly C. Ruggles, Spokane, WA. is a fee-based financial planner located in Spokane.
Kelly C. Ruggles, Spokane, WA. President of American Reliance Group, Inc., a registered investment advisor.
Kelly Ruggles, Spokane, WA. is the author of "The Financial Playbook" for Retirement
Kelly Ruggles, Spokane, WA. does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decisions
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