Is it time to to start thinking seriously about retirement? If it is, it’s time to start thinking about Social Security, too. When is the best time to sign up for benefits? Only you can decide.
Your Timetable
If you want, you can sign up for Social Security benefits at age 62. However, you’ll receive less than your full benefit – somewhere between 70% and 75% – depending on when you were born. Wait until full retirement age (from 66 to 67 for those born after 1942) and you’ll receive your full benefit. Sign up for benefits beyond full retirement age and your benefit will increase 8% a year until you reach age 70. Amanda was born in 1950. If she signs up for Social Security:
- At age 62, she’ll get 75% of her benefit (the minimum amount)
- At age 66, she’ll get 100% of her benefit
- At age 67, she’ll get 108% of her benefit
- At age 70, she’ll get 132% of her benefit (the maximum amount)
Your Breakeven Point
If you don’t need the money at age 62 or you are still working, waiting to draw Social Security may seem like the best choice, however, it’s not that simple. If you delay taking benefits, it will take some time to reach your breakeven point – the point at which the higher payments will start giving you an overall dollar advantage. If you live beyond your breakeven point, waiting will have paid off (as measured by the total amount of Social Security you receive).
Your Health and More
Consider your health. If you are in good shape and have a family history of longevity, you might ultimately come out ahead by waiting to sign up for Social Security. If your health isn’t the best, you may want to begin taking benefits as soon as you can.
Finally, look at your finances. If you’re married, you’ll want to coordinate your and your spouse’s retirement strategies. If one or both of you will receive a pension, that could affect your decision about when to take Social Security. Factor in any retirement accounts and/or taxable savings or investment accounts you may have as well.
TWU Local 514 has retained Mark Loeber, (918) 491-0079, as a retirement councilor for TWU members. Mark is a Licensed Financial Advisor in Oklahoma with over 26 years of experience. The ATD has retained Chuck Laterza, (817) 553-8809, in Hurst, Texas as a retirement councilors. Chuck has over 10 years experience with American Airlines as a Retirement Counselor and has almost two years helping TWU members with their paperwork and retirement benefits. It is highly recommended that you talk to a retirement councilors before you retire.