Many people are eager to retire, but in order to properly plan for retirement, it is imperative to plan ahead. Part of planning ahead should be considering when to start claiming benefits from Social Security.
Luckily, there is a simple process to figure out the best time for an individual to start claiming benefits.
Account Set-Up
First, you can set up online access by using the Social Security Administration’s online portal my Social Security. After logging in, there should be 3 estimates of benefits that can be collected.
Each of these estimates shows how the individual claiming benefits at different times can impact their benefit amount. These numbers show the individual’s estimated benefits when they reach age 62, full retirement age, and, finally, age 70.
Check Earnings History
Next, the user can go to the link that details their earnings history. There the user will see a complete list of their wage incomes.
The formula for calculating the amount of Social Security benefits collected each month only takes the highest-paid 35 years an individual works. Therefore, individuals should ensure the wages listed—especially those on the higher-end—are accurate.
Any inaccuracy should be reported to the Social Security Administration.
Estimate Changes
Then, a person can get an estimate of future earnings. The estimate seen online assumes earnings will not change. If the individual plans on increasing their earnings, through a raise or a part-time job, this estimate will need to be recalculated.
Other Things to Remember
Be sure to check the amount available to claim at other ages – there is a slider below the benefits chart that will allow the user to do this. This will allow users to check estimates for claiming benefits at ages other than the initial 3 provided.
Another important thing to note: If the individual is under the full retirement age, continuing to work can have an impact on Social Security benefits. However, one should keep in mind the cap on income.
Many people rely on their Social Security benefits throughout retirement. So it is important to find out the best time to claim benefits from Social Security that will allow the individual to live comfortably.
Senior Security Alliance is urging the politicians in Washington to create a more financially secure future for senior citizens. With our Senior Citizens Bill of Rights, we are looking to secure Social Security benefits for everyone who has earned them. To find out what you can do to help, go here.
