When to Apply for Social Security Benefits?
- Social Security benefits are also known as retirement benefits. People who work and pay Social Security taxes are paying for their future. These taxes earn you credit towards the amount of money you will receive once you reach the age to apply for Social Security benefits. The more you work and pay into Social Security taxes, the more credits you will receive, which means the larger the monthly payments you will receive. Those who do not pay into Social Security tax or work will not receive the same benefits of someone who has and does.
- At age 62, individuals may apply for Social Security benefits. If you apply at this age, the monthly benefit payments you will receive may be reduced. Those who take Social Security benefits at 62 and still work will see reduced payments, depending on the income that you are bringing in from your job. Many choose not to draw Social Security at the age of 62, especially women, who are believed to outlive men, because they can work longer, and receive a steady income to carry the load of their expenses.
- Sixty-five was the full retirement age at one point, but now it is 70. Those born before 1938 are able to receive full retirement benefits at the age of 65. This qualifies you for an increase, not a reduction, on your monthly Social Security payments.
- Those who wait until the age of 70 to apply for Social Security benefits may indeed benefit the most. They can receive a 41 percent increase in their monthly payments. If you choose to work at the age of 70, you may still receive your normal Social Security benefits and monthly payments with no reduction, regardless of the amount of extra income you bring in.
- You will want to apply for Social Security benefits at least 90 days before you want you want to start receiving your benefits. Factors that determine when you will apply for Social Security benefits are those of personal income. Those who will work after retirement will have another steady income, so they may not be a rush to apply for Social Security benefits. If married, your spouse may bring in a significant income, and you could hold on applying for benefits early, so you do not reduce your monthly payment. Some individuals save money over their lifetime, for instances like this. Therefore they have enough money put up to allow them to wait until the age of 70 to apply for Social Security benefits, and receive their maximum monthly payment.