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Are You Applying for Social Security Too Late or Too Soon?

Everyone who is reaching the age of 62 is wondering whether they should apply for social security right away to grab as much as they can as soon as they can, or whether they should delay benefits to receive the higher amount.

It really depends on your personal situation. For example, if you’re still working, it may not make sense to apply for early benefits. But, if you’re not working and having trouble making ends meet, then it might make sense to grab those benefits early. It really depends on your overall financial plan, but here are a few things to take note of…

  • At age 66, you can receive your full, unreduced primary insurance amount (PIA).
  • If you delay the onset of benefits past age 66, you will earn delayed credits. For each year you delay, your benefit will increase by 8% up until age 70. For example, if ‘Bob’ waits until age 70 to apply, his $2,466 PIA will be increased by 32% to $3,255!
  • You can apply anytime between your 66th and 70th birthdays and receive prorated credit for the delay.
  • Applying at 70 earns you the most credit and results in the highest benefit.

Contact me at dmcmurryiic@msn.com to receive a free Social Security planning evaluation to help you make the decision that’s best for you. You can also access the Retirement Earnings Test Calculator on the Social Security website: http://www.ssa.gov/OACT/COLA/RTeffect.html to get a better idea of where you stand.

By Doug McMurry, Owner of Integrated Insurance Concepts in Arizona


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