Social Security Benefits

If you are thinking of taking your social security at age 62, then think again. At age 62 you would only receive 75% of your benefits. If you wait until age 66 you will receive 100% of your social security benefits.

If you can wait until age 70 you will get a 32% boost in your social security benefits. That’s 8% per year until you reach 70 years of age. So let’s say at age 66 you are entitled to $1000 in benefits, at age 70 you would receive $1,320 a month in benefits.

Waiting until age 70 gives you a bigger income for the rest of your life no matter how bad the economy gets. Of course the one underlying factor of course is inflation. Since your social security benefit is a fixed income, inflation can eat away into that income.

From the history books we can see that the cost of living has only one direction and that’s up. This is why it’s so important to have an additional source of income, whether it is from a 401K plan or working part time to supplement your income.

Remember that social security benefits are taxable so the more you earn the more you are going to be tax on your gross income. Uncle Sam does not want to make it too easy for seniors to enjoy the remaining years of their life. So you will be taxed heavy for all your hard work.

Always check with a Financial Consultant to get the full picture of your finances and ways you may be able to avoid some taxes when it comes time for retirement.