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Dalton Wealth Management
When Should You Start Collecting Social Security?
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 titled "Boomers Ready to Launch" from the MetLife Mature Market Institute, there's a pretty even split between baby boomers who were set to turn 62 in 2008. Of those surveyed, 31% said they planned to apply for Social Security when they turned 62 and 32% said they would 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. To schedule a no-cost appointment, call Dalton Wealth Management at 513-785-3513.
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