SPECIAL REPORT

At Freeman & Davis LLP,
we believe in keeping our clients informed

SOCIAL SECURITY - 
WHEN SHOULD I RETIRE?

One frequently asked question we hear is: “When should I start taking Social Security benefits? “ Under the Social Security law, the full retirement age is currently 65 years and eight months and is rising to 66 by 2009 and to 67 beginning after 2020.  If you retire at age 62, you would receive between 70% and 80% of the full benefit to which you would otherwise be entitled. In addition, if you are now claiming benefits and are under your full retirement age, you must reduce your benefits by $1 for every $2 of annual earned income in excess of $12,480.

In order to answer the question, two factors must be considered. First, will I be working and earning much more than $12,480  a year?  If the answer is yes, then you should most likely wait until full retirement age to begin receiving benefits. 

The second factor is much more difficult to answer. You must estimate how long you expect to live. For example if you have a full retirement age of 66 and take your benefits at 62, you will receive more total cash benefits from Social Security through the age of 78. Thereafter, you would begin to fall behind people of your age who waited to collect the full benefit.

We would be pleased to discuss your retirement options and assist you in planning for your retirement.  Please contact us for assistance.

Info@freemandavis.com.