When Should You Benefit?

When Should You Benefit?

September 04, 2020
Share |

Social Security plays an important role in your retirement strategy. But, don’t forget,  the amount you’ll receive depends on the age at which you file. You can start claiming benefits as early as 62, but for each month you delay past your full retirement age you’ll receive a bonus.

"Social Security: a simple concept

Social Security reaches almost every family, and at some point, touches the lives of nearly all Americans. Social Security helps older Americans, workers who become disabled, and families in which a spouse or parent dies. As of June 2019, about 177 million people
worked and paid Social Security taxes and about 64 million people received monthly Social Security benefits.
Most of our beneficiaries are retirees and their families —about 48 million people in June 2019. But Social Security was never meant to be the only source of income for people when they retire. Social Security replaces a percentage of a worker’s pre-retirement income based on your lifetime earnings. The amount of your average wages that Social Security retirement benefits replaces varies depending on your earnings and
when you choose to start benefits. If you start benefits at “full retirement age” (see chart on page 7), this percentage ranges from as much as 75 percent for very low earners, to about 40 percent for medium earners, to about 27 percent for high earners. If you start benefits
after full retirement age, these percentages would be higher. If you start benefits earlier, these percentages would be lower. Most financial advisers say you will need about 70 percent of pre-retirement income to live comfortably in retirement, including your Social Security
benefits, investments, and personal savings." Excerpt from Understanding the Benefits pdf - found here: https://www.ssa.gov/pubs/EN-05-10024.pdf

Find online benefit calculators for early or late retirement, spousal benefit estimation and detailed calculators here at https://www.ssa.gov/benefits/calculators/.