Social Security benefits can be activated between the ages of 62 and 70 and will provide a monthly income check every year for life. The program was created in 1935 and is a critical piece of most people’s retirement. The benefits replace about 40% of a retirees former salary.

It is important to create a strategy to maximize your Social Security benefits. Enrolling at age 62 will provide payments for the longest time period, but at the lowest possible amount. Your monthly benefit amount grows between 5% and 8% every year you wait to activate benefits. Turning on Social Security at age 62 will reduce monthly benefits by 30%, compared with waiting until full retirement age.

Full retirement age can play a critical role in determining when you should turn on your Social Security benefits. Your full retirement age is based on your date of birth and varies between ages 66 and 67. At full retirement age, you can turn on benefits and continue to work without worrying about your benefits being reduced. If you turn on Social Security while working and you are younger than your full retirement age, your Social Security benefits can be penalized by the IRS.

There are many factors that determine when a person should turn on Social Security. It is important to have a strategy in place to maximize your benefits. We provide an in depth analysis of your Social Security benefits using financial planning software.

If you would like a detailed analysis of your Social Security benefits or a complimentary retirement plan, please click on the blue Schedule Meeting button below or contact us at 954-909-4094, email drop@floridaretirementplanning.com.