Financial Abundance Guide

As the “baby boom” generation ages, we are suddenly faced with making the decision of when to begin taking Social Security benefits. In 2008, the leading edge of “baby boomers” turns 62 and become eligible for Social Security. However, since their Social Security “Full Retirement Age” (FRA) is age 66, the amount that they receive at age 62 will be only 75% of the amount that they will receive if they wait until they turn 66.

If you wait until age 70 to begin receiving your Social Security benefits, your “delayed retirement credits” will provide benefits that are 32% more than the age 66 (FRA) benefits and 76% more than you receive at age 62. Another factor to consider is that between the ages of 62 and 65, if you earn more than $12,960 annually, your Social Security benefits are further reduced by 50% of all earnings above that amount.

If your spouse has career earning that are considerably less than yours, your spouse may choose to receive ½ of your Social Security benefit amount. However, if you begin taking your Social Security benefits early, your spouse can only receive up to one half of your reduced benefit. When you die, your spouse may also receive 100% of your benefits, even if your benefits include the “delayed retirement credits.”

If your Social Security benefits will be more than twice your spouse’s benefit, it will often be in your best interests to delay collecting Social Security benefits until you are age 70. Unless both you and your spouse are in poor health, the odds that at least one of you will live to 85 and beyond are fairly high. If this occurs, you and/or your spouse will be very glad to be receiving the increased benefit amount.