Published: July 7, 2021
If you’re nearing your 62nd birthday, you’ve probably heard from the Social Security Administration (SSA) a few times in regard to signing up for your Social Security benefits. And, if you’re worried about not knowing what to do, don’t be. Social Security is a tricky concept, and signing up for your benefits is equally as confusing because there are many things you need to consider when signing up.
There are three ideal age categories in which you will want to sign up for these benefits. They are: 62, 66 and 70. Age 62 is the earliest in which you can sign up, 66 is your full retirement age and age 70 is the latest in which you can sign up. We will get more into the importance of these ages in a moment, but let’s first understand what Social Security benefits are and what qualifies you for them.
Social Security benefits are payments that are made to retirees or to those who are disabled, as well as their spouses and family, as applicable. It is assigned as a partial replacement for the income for those who are qualified.
Here are some of the advantages and disadvantages to Social Security:
There are a lot of requirements that you must meet before you are fully eligible for Social Security benefits. On top of being a retiree or disabled, you must have been paying into the Social Security program during your years of employment and accrued 40 credits. You can earn up to four credits a year. A credit is earned whenever one makes a set amount of money. The number changes every year alongside inflation.
You must also apply for Social Security benefits. You can apply online with the SSA or over the phone by calling the toll-free number at 1-800-772-1213. You are also able to apply for Social Security benefits in-person. When you apply, there will be information you need to expect to provide. Below are a few examples of what you should have prepared:
There’s not a blanket timeframe that applies to everyone in terms of when they should sign up for Social Security. However, the longer you live, the more appealing it is to take it later. This is because you’ll get more money for a longer amount of time. Easy, right? Well, unless you know exactly what age you’re going to live to, it’s hard to say. You can begin collecting benefits when you are 62, but the earlier you draw, the less you will receive on your payments. That works in reverse, too. The later you draw, the more you will receive on your payments.
Because no exact time is the best time, you should sign up for Social Security when it is best for you. A great way to get started on your discussion of which age is best for you to start drawing benefits is the Break-Even Analysis chart. This chart will compare how much money you’ll receive based on when you decide to sign up for Social Security — at age 62, 66, or 70. The chart will take into consideration your income and how much you will be making per month, depending on what age you are when you sign up.
Although this chart will help you get the ball rolling in your decision-making process, it should not be used when making your final decision. There are other things that you will need to consider when choosing to collect earlier or later:
Collecting your Social Security benefits early just because you have the option to isn’t the smartest move you can make. Instead, you need to focus on why you may need to sign up early. If you’re in a position to sign up when you’re closer to 70, waiting may be in your best interest. This doesn’t mean that you should hold off on collecting your benefits, either. If there is a reason in which you need to receive your monthly payments at an earlier time, don’t hold off for the sake of getting higher payments.
If you are having trouble deciding whether it would be best to collect early, wait until you’re at full retirement age or when you’re 70, then you’ve come to the right place. The Best Senior Services is dedicated toward ensuring you know what’s in your best interest, and we prove it by setting you up with an agent who will work with you to help you better understand plans based on your specific needs. Visit our website to get started or call us at 855.979.8277!
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