Review Your Social Security Claiming Options Early

Jennah Purk, CPA, CHBC

The decision on how and when to claim social security benefits is one of the most important financial decisions many of us will make.  If you are married, the options and complexity increase significantly. Accordingly, a good retirement plan will include a review of the social security options long before the actual implementation date.

Maybe you know some of the basics:

·        You need 40 quarters of employment to collect benefits.

·        There is up to a 25% penalty for claiming benefits early.

·        You can increase your “full retirement age” benefits up to 32% by waiting until age 70.

Many people have a “take it while I can get it” approach, starting their benefits at age 62.  If there are health issues or lack of family longevity, this may be fine.

Many articles suggest that for a couple, the lower earning spouse claim benefits at age 62 based on their earnings record, and the higher earning spouse wait until age 70.

While we can’t even scratch the surface of this issue here, make sure you understand all your options well in advance so you can choose the optimal course when the time comes.

For more information, refer to the Social Security Administration or contact us.