Claiming Social Security at Full Retirement AgeSubmitted by Pennington Financial Group on November 29th, 2017
It is common to think that you should begin to claim your social security at the appropriate retirement age. However, is that really what is best for you, and possibly your spouse as well? Although navigating through social security retirement plans is going to be different for everyone, it is recommended that everyone become well informed on the subject to make the best decisions for them.
The age that you can begin to claim the benefits from your social security retirement package is at age 62. However, if you wait a few years until you are 65 or 66, then you will reap a higher monthly benefit for those additional months. The difference is actually quite significant: when you claim at the age of 62, your benefits could be reduced by up to 25% of your maximum earnings. However, it is a delicate balance of when is the best time to claim your social security.
There is no universal solution to this question, and the right answer for you may be different than for your spouse or your best friend. If you claim your benefits at the earliest time, then you will ultimately receive a smaller percentage of your earnings. If you wait for a few years to claim your benefits, then they could raise up to 8% each year. On the flip side, you don’t want to wait too long, especially if you have a spouse to keep in mind. Women quite often outlive their husbands and therefore would be a contributing factor to the decision of when to claim your retirement benefit, or vice versa depending on the specific situation. If you claim your benefits at 62 when you are initially able, then it would significantly reduce the income for your spouse if you were to pass.
The largest benefit of claiming social security at 62 is the immediacy with which you can access social security benefits. However, it can be beneficial to wait those few extra years in order to get the maximum reward. Although most do not actually wait past the age of 62, it could be the best option for you. However, if you need immediate access to those funds, claiming your social security benefits at 62 could be a better choice.
Truly, the most appropriate time to claim your social security retirement plan is completely dependent upon your unique situation. There are factors such as marriage and financial status that come into play and influence each person, making it difficult to come up with a simple answer that would work best for every person looking at social security. If you want to discuss the options for your social security to see what is best for you, contact Pennington Financial Group. We will meet with you on an individual basis and offer you personalized counsel. We are located in Gold River, California and serve the surrounding area.