Social Security Retirement Benefits - When Should I Collect?

Can't decide when is the best time to collect Socialcontinue working up until you reach full retirement
Security? 62? My full retirement age? Should I waitage. In 2002, wage earners younger than the current
until I'm 70? These are the questions that we all willfull retirement age of 65 will lose 50 cents in benefits
face as we get closer and closer to retirement age.on every $1 they earn over $11,280. After reaching
Choosing which option is right for you can be quite afull retirement age, you will not lose any of your
chore but the first thing you need to do is tobenefits but they may become subject to taxes
request an earnings statement from the Socialdepending upon your filing status.
Security Administration. This statement will give you aIf your spouse hasn't worked and/or earned much
year by year breakdown of your earnings as well asunder Social Security and you want to increase your
tell you how you will be able to collect if you retirespouse's benefits, you may want to wait until your
early, at full retirement age and what you will be ablefull retirement age. When your spouse is ready to
to collect at age 70. It will take about a month or soretire, he/she will be able to choose between their
to get it but once you do you will be able to sitown records or they can receive half of their
down and do the math. Just remember thatspouse's benefits. In the event of the death of the
whatever payment you decide to collect, other thanhigher earning spouse, the surviving spouse can claim
for cost of living adjustments, it will not change.the deceased's full benefits.
Your first option is to take reduced benefits at ageThe Social Security Administration calculates benefits
62. If you were born before 1937, you would receiveusing a complicated algorithm based on life
80% of your full retirement benefits. If you wereexpectancy so if you have a family history of
born after 1938, the full retirement age will begin tolongevity, you might want to consider waiting to
increase. For those born between 1943 and 1954,collect until you are 70 so you can get the maximum
you won't be eligible for full retirement until you arepayout.
66. After 1954, the age you will be able to retire withIf you don't need the money, you may want to
full benefits will rise in 2 month increments until fullconsider collecting early and depositing it into a
retirement age reaches 67 for everyone born in 1960retirement account where you can collect interest.
or later. Sound confusing? It is.Whatever you decide to do, think it through
To complicate matters even more, there are otherthoroughly before you make your final decision about
factors you need to consider before deciding whenwhen to collect your Social Security Retirement
the best time to collect is.Benefits, it can make a big difference in how much
If you chose to accept payments early, you will beyou will ultimately collect.
limited in how much you can make if you decide to