We all think we know the basics about Social Security, but do we really understand how much your benefits can vary?
Your full retirement age is generally between 66 and 67, depending on the year you were born. Your monthly benefit, often referred to as your Primary Insurance Amount (PIA), is based on your highest 35 years of indexed earnings.
You can begin collecting benefits as early as age 62, but doing so will permanently reduce your monthly benefit. On the other hand, delaying benefits beyond full retirement age can increase your monthly income, with the maximum benefit available at age 70.
The best claiming strategy depends on several factors, including:
- How much retirement income you’ll need
- Other sources of retirement income
- Potential tax implications
- Your overall health and life expectancy
- Survivor benefit considerations
- Divorce history
- Dependent children
- Available savings and liquid assets
A well-planned Social Security strategy looks at the complete picture, not just your age.
If you’d like help evaluating your options and creating a strategy that fits your retirement goals, give us a call today.