Allie’s Social Security Basics
Lately, it seems, I’ve heard more and more people talking about social security benefits. Not only talking about benefits they will receive, in terms of planning, but more specially when to begin drawing benefits and when discussing with couples, a tactical plan on which spouse’s benefit to draw and when.
Here’s the rundown. If you’re in your 60s now, full retirement age is 66, and this is when you can receive full benefits. At age 62 you can draw 75% of your full benefit, but there are advantages to waiting. For each year you wait to receive benefits after age 66, you receive an additional 8% per year. So if you wait until age 70, you would receive 132% of the amount available to you at age 66.
For couples, this is where we tend to see more moving parts and things can be slightly more complicated. You still have the right to claim your own benefit, BUT you have the option of waiting and claiming 50% of your spouse’s benefit. What some folks don’t realize is that you can actually collect 50% of your spouse’s benefit, say at age 66, and let yours grow until you are 70 years old and then switch to collect your higher accumulated benefit and vice versa.
Everyone’s situation is different and depends on age, size of benefit, and your current financial situation. So, before deciding when to take your benefit, be sure to consider all of the factors. You may have more options than you think.
Give us a call. We’re here to help.
