Calculating Your Social Security Benefits
Your Social Security benefit is based on your earnings over your entire work career. Your benefit amount is also based on the age you begin receiving retirement benefits. The earlier you start receiving benefits, the lower your payment will be.
You are first eligible for Social Security at age 62, but full retirement is reached at age 65 for individuals born after 1938. If you delay receiving your benefit beyond age 65, your benefit amount will increase by approximately 8% per year for each year you delay up to age 70. The increase also varies according to the year of your birth.
Now let’s examine the last set of statements. It used to be the general concensus of Human Capital Leaders and others that you should delay receiving your benefits. Many of us have taken a different position with that advice. In addition to determining what is the best fit for you and your circumstances, you might also want to evaluate based on your life expectancy (estimated by insurance actuary charts) how long it will take you to recoup what you receive in payments starting at 62 if you delay those payments until age 66.
For example, if you receive $15,000 in benefits between age 62 to age 66, will you receive an equal amount or greater at age 66 until your estimated time of death. It is becoming increasingly more important in today’s economy that we educate ourselves to use our analytical and evaluative skills to find the right fit for our circumstances and needs.
You have more information about your circumstances than anyone else so be careful, be cautious, be informed and make the best decision for your life to retire well.
P. S. Always Remember to Share What You Know.
