Choose When to Start Collecting Social Security Benefits With This Calculator
As you approach retirement, you may be wondering when is the right time to start collecting Social Security benefits. Here’s an important point to know: Although you can start getting payments as early as 62 , you can increase your benefits by accepting payments later. Your Social Security benefits increase with each month you wait – up to 70 years – but of course, waiting a few more years for a larger check means you’ll receive fewer checks overall. How to determine the break-even point?
One way to get rid of the myriad of questions that are being asked is to add information to the Social Security break-even calculator. These calculators may offer some guidance on choosing the best age to start receiving your benefits.
Unfortunately, there is no one-size-fits-all approach to claiming social benefits, and there are several things to consider before making a decision. For example, your gender matters a lot because women live longer than men on average , and social security often covers a larger percentage of women’s retirement income .
You can also think about your past or current marriages and whether you can qualify for more money based on your spouse’s work history . Your current health status and life expectancy can also influence your choices.
Clearly there are many factors at play here, and it is very easy to be overwhelmed by the many “what if?” payment scenarios, and many calculators do not include two key factors – a way of comparing filing deadlines or accounting for inflation. But it’s worth giving a try to the new calculator from Social Security Intelligence, which aims to address these shortcomings. According to the website, you can access it for free (for now), but you must provide your name and email address in order to create an account.
While no calculator can replace personalized advice from a financial advisor, using this kind of tool is better than using it and collecting payments without a plan.
You can learn more about the basics of Social Security benefits, including the factors that can affect your benefits, here . You can also visit the main social security website or call the department toll-free at (800) 772-1213.