Should i take social security early calculator

For example, if you were born in and file for benefits at age 62, your monthly benefit will be 30 percent less than if you had filed at your full retirement age of Every month past your full retirement that you delay, Social Security will increase your check by about 0. A larger benefit check sounds great, but there are tradeoffs, and soon-to-retire folks should consider multiple issues before they decide one way or the other on when to file.

Neiser urges those who have not saved enough for retirement to use whatever means possible to postpone their Social Security benefits until after their full retirement age to help boost their future income. Americans become eligible for federal health insurance coverage at age 65, well after when you can begin to file for Social Security. If you work during retirement, you have another incentive to delay collecting Social Security.

Earning too much at a job after you begin collecting your benefit can reduce your payout, but only if you have yet to hit full retirement age. However, when you hit full retirement age, your benefit will increase to account for any benefit that was withheld earlier due to working. However, taking early benefits can still pay off despite the reduced monthly check. Married women are also good candidates for claiming early benefits because they are likely to outlive their husbands. However, this scenario works only if the husband does not claim his benefits early.

By not claiming early benefits, the husband effectively increases the monthly benefit his wife eventually receives. Your break-even age occurs when the total value of higher benefits from postponing retirement starts to exceed the total value of lower benefits from choosing early retirement. If you expect to live beyond that age, it could make financial sense to delay drawing benefits.

Consider your own financial needs, health and other retirement plans before making the call. But if you expect to live until a ripe old age and you otherwise have your own financial resources, it can make a lot of sense to delay taking your monthly benefit and pile up a larger paycheck while you wait.

How We Make Money. Written by James Royal. Written by. James Royal. Bankrate senior reporter James F. Royal, Ph. He leads a team responsible for researching financial products, providing analysis, and …. Edited By Brian Beers. Edited by. Brian Beers. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Getting Started. How Social Security Is Organized. Getting Benefits. Benefits and Your Income.

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Key Takeaways Deciding at what age to start taking Social Security income can be a complicated question. Calculating the ideal breakeven age for benefits is a useful way to ensure that you balance payments versus longevity. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

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Investopedia does not include all offers available in the marketplace. Related Articles. If the higher-earning spouse dies first, then the surviving, lower-earning spouse will receive a larger Social Security check for life.

However, spouses born before Jan. It allows them to claim spousal benefits while delaying their own benefits up to age Social Security benefits can be taxable if your combined income is high enough. Your Social Security benefits may be partially taxable if your combined income exceeds certain thresholds. The SSA defines combined income using this formula:.

How do these tax considerations affect when you should apply for Social Security benefits? Then you may want to claim early instead of waiting until age However, it's important to remember that investments have risks, and you may lose a portion or all of your invested money.

However, if your returns are lower, if you receive reduced Social Security benefits because you continue working past age 62, if you have to pay taxes on your Social Security income, or if you have a spouse who would benefit from claiming Social Security benefits based on your record, then another Caplinger analysis suggests that all bets are off. Claiming Social Security benefits could make you ineligible to put more money into a health savings account HSA. Your health insurance coverage can also play a role in deciding when to claim Social Security benefits.

Do you have a health savings account HSA to which you would like to keep contributing? The SSA also cautions that even if you delay receiving Social Security benefits until after age 65, you might still need to apply for Medicare benefits within three months of turning 65 to avoid paying higher premiums for life for Medicare Part B and Part D.

As of Oct. If you can live without the income until age 70, then you will ensure the maximum payment for yourself and lock in the maximum spousal benefit. Just be sure that you have enough other income to keep you going and that your health is good enough that you are likely to benefit from the wait. Social Security Administrator. Social Security Administration. Social Security Bulletin. Accessed Oct. Internal Revenue Service. Social Security.

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