Social Security Benefits - at what age should you begin receiving them?

More than 91% of current retirees receive monthly benefits from the government program referred to as Social Security. The program is very important to seniors, as nearly three out of five retirees receive at least half of their income from Social Security. It is imperative that individuals understand their options as to when they should commence receiving Social Security retirement benefits.

Individuals must wait until their full retirement age in order to draw non-reduced Social Security benefits. For baby boomers (defined as those born between 1943 and 1954), full retirement age is at age 66. However, you may elect to receive Social Security retirement benefits at age 62. But if you elect to receive retirement benefits at age 62, there will be a permanent reduction in the amount of monthly benefit you can receive. Moreover, in the event that you delay receiving Social Security benefits until after full retirement age, you get a bonus in the form of delayed retirement credits. These annual increases apply for each year that you delay retirement, up until the age of 70 years old.

There are several factors that you should weigh prior to deciding the proper age to receive Social Security benefits, including whether you have other sources of income. If you has sufficient income, then it may be wise to defer the benefits until full retirement age or later.

Another factor is whether you want to continue working. You aren't required to stop working to receive the benefits. However, if you elects to continue working and to receive benefits before full retirement age then you face a potential reduction in benefits.

Still another factor is your health. If you is in poor health, which may reduce your life expectancy, then electing an early benefit may be a wise decision.

In sum, determining the best age to receive Social Security benefits is a complicated endeavor. An estate planning attorney and other financial professionals can assist you in navigating this process.


by: Todd C. Ratner, Esq.