Watch Daniel DiVizio, CFP® CRC®, explain when to take action. Claiming Social Security is essential to your retirement.
Understanding your Social Security benefits:
Let’s first summarize the Social Security collection process:
You can start collecting Social Security as early as age 62 – but there’s a catch. If you collect before you reach your full retirement age (FRA), you’ll receive a lower monthly payment – permanently. For example, if your FRA is 67, but you begin to claim benefits at 62, you’re signing up to get 30% less. However, this reduction will decrease for each month you wait after age 62, up until your FRA. Think of your FRA as your break-even point.
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In short, there are a few different methods to collect your benefits as you enter your retirement age, and can differ based on when you were born and when you want to retire as an individual or married couple.
Did you know?
- For every year you delay in benefits, you can get a 8% increase on those benefits. This is crucial to understand as your benefit will be higher the longer you delay starting it. This decision should be made according to your desired lifestyle in retirement, and other sources of income.
- If you claim these benefits earlier, you may be subjected to penalty reaching up to 30%.
- There are a few strategies that follow mixed claiming times for couples. For example, one partner may take at 62, and another may take after 70.
Overall, it is wise to keep these in mind to solidify the appropriate retirement plan for you and your loved ones. For more information, stay tuned with Signet Financial Management.
Signet Financial Management, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission and serves as a fiduciary. Overall, Signet advisors will help you with:
- Financial planning
- Investment strategies
- Tax planning
- Retirement planning
- Insurance planning
- Estate planning
To protect and grow your wealth is our mission.
Still stuck on how to claim social security benefits? Please contact us, Daniel DiVizio or info@signetfm.com to schedule a time to talk. We would love to hear more from you.
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