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When To Start Receiving Retirement Benefts
(over)
A
t Social Security, we’re oten asked, “Whatis the best age to start receiving retirementbenefts?” The answer is that there is no one“best age” or everyone and, ultimately, it isyour choice. You should make an inormeddecision about when to apply or benefts basedon your individual and amily circumstances.We hope the ollowing inormation will helpyou understand how Social Security can ftinto your retirement decision.
Your decision is a personal one
Would it be better or you to begin receivingbenefts early with a smaller monthly amountor wait or a larger monthly payment laterthat you may not receive as long? The answeris highly personal and depends on a number oactors, such as your current cash needs, yourhealth and amily longevity, whether you planto work in retirement, whether you have otherretirement income sources, your anticipateduture fnancial needs and obligations, and, ocourse, the amount o your uture SocialSecurity beneft. We hope you will weigh allthe acts careully and consider your own cir-cumstances beore making the importantdecision about when to begin receiving SocialSecurity benefts.
Monthly payments diersubstantially based on whenyou start receiving benefts
I you live to the average lie expectancy orsomeone your age, you will receive about thesame amount in lietime benefts no matterwhether you choose to start receiving beneftsat age 62, ull retirement age, age 70 or anyage in between. However, monthly beneftamounts can dier substantially based onyour retirement age. Basically, you can getlower monthly payments or a longer periodo time or higher monthly payments overa shorter period o time. The amount youreceive when you frst get benefts sets thebase or the amount you will receive or therest o your lie, though you do receive annualcost-o-living adjustments and, depending onyour work history, may receive higher beneftsi you continue to work.The ollowing chart provides an example ohow your monthly beneft amount can dierbased on the age at which you decide to startreceiving benefts.
Monthly Benefit Amounts Differ Based on theAge You Decide to Start Receiving Benefits
This example assumes a benefit of $1,000 at a full retirement age of 66
 $750 $800 $866 $933 $1,000 $1,080 $1,160 $1,240 $1,32062 63 64 65 66 67 68 69 70Age You Choose to Start Receiving Benefits
   M  o  n   t   h   l  y   B  e  n  e   fi   t   A  m  o  u  n   t
$0$300$600$900$1,200$1,500
Let’s say your ull retirement age is 66 andyour monthly beneft starting at that age is$1,000. I you choose to start getting beneftsat age 62, your monthly beneft will bereduced by 25 percent to $750 to account orthe longer period o time you receive benefts.This is generally a permanent reduction inyour monthly beneft.I you choose to not receive benefts untilage 70, you would increase your monthlybeneft amount to $1,320. This increase isrom delayed retirement credits you get oryour decision to postpone receiving beneftspast your ull retirement age. The beneftamount at age 70 in this example is 32 percentmore than you would receive per month iyou chose to start getting benefts at ullretirement age.
Retirement may be longerthan you think
When thinking about retirement, be sureto plan or the long term. Many o us willlive much longer than the “average” retiree,and, generally, women tend to live longer thanmen. About one out o every our 65-year-olds
When To Start Receiving Retirement Benefts
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