Social Security is a system everyone deserves to take advantage of, but deciding when to claim your benefits isn’t always easy. The Social Security lawyers at Achille, Ellermeyer, Wallisch & Sobol Attorneys At Law in Brookville, PA, specialize in guiding clients down the complicated path of retirement. As you approach the end of your working years, you have several options: Do you want to claim your benefits early, on time, or a few years later? There are advantages and disadvantages to each choice.
When to Claim Social Security Benefits
Before Full Retirement Age
Everyone can begin receiving Social Security payments at age 62, and more than 40% of U.S. citizens choose this “early retirement” option. While you’ll receive money a few years early, your checks will be significantly less than they would be if you wait — about 25% less than the payment at your full retirement age. This reduction will go up to 30% in 2022 for everyone born in 1960 or later.
Full Retirement Age
Many people assume full retirement age is set in stone at 65. However, it now is 66 or 67 for most people, depending on the year you were born. You can check the Social Security Administration’s website to find your retirement age. If you wait until this recommendaton, you’ll receive complete benefits.
After Full Retirement Age
If you’re still able to work after you turn 66 or 67 and are doing well financially, holding out a few years before you receive Social Security payments will yield long-term advantages. The Social Security Administration rewards individuals who wait to claim benefits until they’re 70 with an 8% increase in payments each year. After a few years, those yearly bonuses will equal more than what you would have received if you had claimed payments earlier.
The payment option you choose will depend on your financial situation, employment opportunities, and health. It’s an important decision, so turn to a Social Security lawyer for advice. Achille, Ellermeyer, Wallisch & Sobol Attorneys At Law in Brookville, PA, will outline your choices based on your needs. To schedule an appointment with a Social Security lawyer, call (814) 849-6701. Visit their website for more information about their practice areas, including family law and workers’ compensation.