Let's get into the facts. It is essential to know your full retirement age, which is 67 if you were born after 1960. For more information, you can refer to the Social Security Administration's website at ssa.gov. The government recognizes 67 as the full retirement age for individuals born after 1960.
The earliest age at which you can file for Social Security benefits is 62. However, there will be a permanent reduction of 25% to 30% in your benefits depending on your full retirement age if you choose to take it early.
Waiting until you reach your full retirement age of 67 will allow you to receive 100% of your benefit. If you delay beyond your full retirement age, up to age 70, your monthly benefit will increase by 8% per year. It is crucial to understand these rules and plan accordingly.
In certain cases, you may regret your decision to claim benefits early. Within the first 12 months of claiming benefits, you have the option to withdraw your application. You must repay all benefits received, including any spousal benefits, and can restart your benefits at a later date for a potentially higher amount.
It is important to educate yourself on the rules and guidelines regarding Social Security benefits. Understanding your goals, income needs, and personal situation will help you make an informed decision on when to take Social Security benefits. Remember, the decision is permanent, so careful consideration is key.
For further information, ssa.gov is a valuable resource that can provide estimates of your benefits based on your individual circumstances. Take the time to research and plan accordingly to maximize your Social Security benefits in alignment with your financial goals.
Darryl Jarmosco, CFP®, ChFC®, specializes in retirement planning in Grand Haven, MI.
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