Picking the Right Social Security Age: Not an Easy Decision
Sean Williams notes the difficulty in selecting the right age to claim Social Security benefits as an imperfect science coupled with luck. But one should at least know the four factors used in determining monthly benefits, so as to try to make the best informed decision. The first two are work history and earnings history, with the Social Security Administration taking into account one’s 35 highest-earning, inflation-adjusted years in calculating a retirement benefit. Note a $0 will be averaged in for each year less of 35. The third factor taken into account is birth year, which determines the age at which one becomes eligible to claim a 100% benefit (full retirement age). For most Americans, this will be 66 or 67, or somewhere in between. The fourth important factor is claiming age. Retired worker benefits can begin at age 62, but for each year one holds off taking a payout, monthly benefits grow by approximately 8%, up until age 70. Read more from Sean Williams…
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.