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When Should You Begin Taking Out Social Security?

When Should You Begin Taking Out Social Security?

June 11, 2020

With all that has gone on in the last few months, you might be wondering when the best time to start taking out Social Security is. While we will go over the details below, keep in mind that everyone’s financial situation is different. Keep reading to learn when you should begin taking out Social Securities.

When it comes down to retirement, planning ahead is one of the best things you can do for your future self. Planning ahead means knowing the benefits and knowing the consequences of how retiring early will affect your portfolio and the benefits you receive. It is imperative that you also know how benefits are calculated. 

Social Security benefits are calculated based on how much you have accumulated over your career, the year in which you were born, and when you started claiming Social Security on your paychecks. In order to receive your benefits, whether they are full or monthly, you will have to reach the age that matches what Social Security presumes as the full retirement age. To learn what your retirement age is, visit here.

Now, if you choose to claim your Social Security benefits and retire early, your payments each month will be significantly reduced. The benefit of waiting until the age of 70 to retire is that if you wait, you will receive an extra 8% annually. One thing to take note of when considering when is the appropriate time to retire is that even if you wait till 70, waiting any longer after that does not increase the amount you get. 8% is the maximum addition to your Social Security payments. We recommend waiting as long as you can to begin taking out your benefits because the longer you wait, the more your payments will be each month.

While waiting until you turn 70 is the ideal age to begin withdrawing Social Security benefits, there are several other factors to be aware of when planning for your retirement, such as taxes, investments, medical coverage, spousal benefits, medicare and more. 

When it comes to retirement, there are right ways to plan and there are wrong ways to plan. In order to make sure you know everything you need to know regarding your retirement portfolio and your Social Security benefits, we highly recommend speaking with a financial professional to ensure you get the proper care and advice for your financial future. Everybody’s financial future has a different map, and we want to make sure our clients are prepared to the fullest.

To learn how we can help guide you regarding your Social Security benefits and retirement plan, contact us at (321) 225-3154 and let’s set up a meeting to go over your goals for your future!