Yes, you can begin receiving your Social Security retirement benefit as early as age 62. However, you’ll only receive 75% of your full benefit. (Cue the trombone of disappointment.) Instead, if you delay your benefit start date, you can receive a check that’s 8% higher for you each year you delay. Here’s how it works:
- Those born between 1943 and 1954 will reach their full Social Security benefit payment at age 66. (Full retirement age increases by two months each year after 1954, until reaching a full retirement age of 67 for those born in 1960 or later.)
- Those same retirees can begin receiving their benefit at age 62. But if you start your benefits early, the amount paid to you each month is permanently
- For each year you delay receiving benefits past your full retirement age, your Social Security benefit is increased by 8% per year.
- After age 70, the Social Security benefit is maximized. Further delay adds no additional benefit.
Here are a few reasons why you should consider delaying receiving your Social Security benefits until you reach age 70:
- You expect to live longer. If your parents and grandparents lived long lives, you may wish to delay receipt of your initial Social Security benefits. The opposite is true if you have a shorter life expectancy.
- You don’t need the income. If you’re still working or have alternative income sources, it may be better to delay receiving your benefits. An 8% increase in monthly payments is a good increase versus other investment alternatives.
- Your spouse has died. You will need to review the possibility of receiving Survivor Benefits based on your spouse’s earnings. Later, you could start collecting your own Social Security retirement benefits based on your earnings.
- Your benefits may be taxed. If you have other income, your Social Security retirement benefits could be subject to income tax (up to 85%).
Review your situation carefully to see if it makes the most sense for you to delay receiving benefits.
