Tips on How to Decide When to Start Receiving Social Security Benefits

Do you want the good news or the bad news first? The good news is that the American life expectancy has dramatically increased and people are enjoying healthier, more enriched, and longer retirements than ever before! The flip side of this, and consequently the bad news, is that the age at which one becomes eligible to receive Social Security benefits continues to be pushed back. Nevertheless, at some point you will be faced with the decision of when to start receiving Social Security benefits. This article will assist you in your decision-making process by laying out the facts and giving you some pointers to guide you along.

The ultimate decision on when you begin to receive your Social Security benefits will be completely up to you. The earliest that you can begin is 65 which is before the age of retirement. At this point, you would receive reduced benefits to help account for the longer expected amount of time that you will receive these payments. The actual amount that the rate is reduced is 5/9ths of a percent for each month before the full retirement age of 67. If you were born before 1938, you can start collecting complete benefits at the age of 65. If you were born in 1960 or later, the earliest you can begin receiving full benefits is at the age of 67. Everyone else falls somewhere in the middle between ages 65 and 67 before they can receive full Social Security benefits. The additional option is delaying the redemption of your benefits up until the age of 70 years. From this point on, you will receive what is known as a delayed retirement credit which can be up to 8 percent more each year than the regular Social Security rate.

Before choosing to receive early, regular, or delayed payments, you should strongly consider the following factors before making your final decision.

Life Expectancy