A lot of my clients ask me questions about drawing on their social security for retirement. What I’ve found is that many pre-retirees don’t fully understand how social security benefits work according to a recently released study conducted by AARP and the Financial Planning Association. Here are three relevant facts from the study that I found to be very useful:
1 – You can start taking benefits at age 62
The earliest age you can start taking social security benefits is age 62. However, the longer you wait, the more benefits you can collect. For example, you may be able to receive between 25 – 30 percent MORE benefits if you wait until full retirement age, which is currently between ages 66 and 67, depending on when you were born.
2 – You can defer your benefits up to age 70
Waiting until age 70 to start claiming benefits can boost your benefit by up to 8 percent per year that you wait. This is known as the “Delayed Retirement Credit.”
3 – Spousal Benefits May Apply
A divorced individual could collect social security benefits based on the ex-spouse’s work history if the couple was married for at least ten years.
Bottom line: make sure to evaluate your social security options with a financial planner before making any decisions that may impact your retirement plans!
About the Author
David Reznikow is a licensed loan partner at Fairway Independent Mortgage. A Brookline native and BHS graduate, Reznikow is currently a Newton resident but has remained part of the Brookline community. As a Brookline Chamber of Commerce Director and business member Reznikow has had the opportunity to add to the vibrancy and diversity of the business community while helping to raise funds for local charitable organizations through many Chamber initiatives. Both Reznikow’s parents have businesses in Brookline, still live in the home where they raised three children, and can often be found playing with their grandson, Cameron, at Dean Park.