We all think we know the basics about Social Security, but do we really know how different the benefits can be? The standard retirement age is between 65 and 67, depending on your birthday. Your monthly income, also called your PIA, is determined by your highest 40 quarters of wages. You can start taking benefits as early as age 62, but your monthly income will be reduced by at least 25%. Say your full retirement age is exactly 66 years old. Then you can delay until age 70 and your monthly income will be 32% higher. Your strategy needs to be based upon a number of factors: how much retirement income you need, other sources of income, income taxes and your general health condition.
Other factors also weigh in, like survivor needs, divorce, dependent children and available liquid assets. Proper planning requires attention to all these details. Give us a call today for help with planning your Social Security strategies.