Toni:
My husband has recently been laid off from his job and I am having a real stress moment. He has always provided the main income, but now my job is paying the monthly bills. My husband will not touch his 401K or cash in any CDs. Friends are advising him to go ahead and get his Social Security check, but he wants to wait as long as he can.
He has just turned 62 and I’ve been told he can begin his Social Security check. Is this a good option? Can you explain how to get your Social Security check? Thanks, Mary Ann from Houston, TX
Mary Ann:
Help is on the way!! At my Medicare workshops I am often asked, “What is the best age to start receiving Social Security benefits?” There really is no best age and everyone needs to make an informed decision not an emotional one.
The following information from Social Security will help you decide when your Social Security check can fit into your retirement decision.
- One can receive their Social Security check early after they have turned 62, your benefits will be reduced by a maximum amount of 25% and the reduction changes if you begin your check at 63, 64, 65, etc. If it is estimated that your 100% Social Security amount is $1,000 at 66 (your full retirement age), then you will received a 25% reduction to $750. Many people do not realize that they are not receiving all of their Social Security check, when taking your check early.
- Wait until your full retirement age (FRA) and receive 100% of your Social Security benefit amount which in this example is $1,000 per month. Under current law, 2002 was the last year anyone age 65 could receive FRA (100%) of their Social Security benefits. Those born in 1938 or later, your normal retirement age is some time after age 65 all the way to age 67 for those born after 1959. Those born 1960 or later and your FRA is 67.
- Waiting past your FRA of 66 (example only) and received a credit of 8% per year wait to age 70(4 years) or an additional 32% totaling $1,320 per month. The 32% increase is from postponing receiving your Social Security benefits past your full retirement age.
Receiving a Social Security check and working?
Mary Ann, if your husband reaches his FRA receiving 100% of his Social Security benefit; he can work and earn as much as he wants and still receive his full Social Security benefit check.
If his age is less than his FRA and receiving under 100% of his Social Security benefit such as one who is 62 and receiving 75% of their FRA Social Security check; then when his earnings exceed a certain dollar amount, some of his Social Security benefit payments will be withheld. Then when he reaches his FRA he can, then earn as much as he wants.
Makes no sense to me why under your FRA you cannot earn as much as you want, but at the FRA and older, the amount you earn does not matter.
When considering receiving your Social Security check before your FRA, weigh all of your options. Taking the Social Security check early might seem attractive, but it means settling for a lower monthly payment for the rest of your life.
Confused about Medicare workshop:
- Cypress Bible Church-Saturday, March 29th from 8:30 AM-11:00 AM at Cypress Bible Church,11711 Cypress- N. Houston Rd, Cypress, TX 77429 RSVP 832/800-4674
**New Social Security and Medicare workshop beginning Tuesday, April 1st at 2:00-4:00 in the afternoon learn how to maximize your Social Security benefits and also navigate the maze of Medicare. Join Toni King at her new Sugar Land office at 77 Sugar Creek Center Blvd, Ste 400, Sugar Land, TX 77478. RSVP 832/800-4674 as seating is limited.
Toni King, author of the new Medicare Survival Guide®, which is a simple guide that puts Medicare in people terms, is on sales at www.tonisays.com. Email questions or to schedule a “Confused about Social Security and Medicare Workshop” to www.tonisays.com/ask-toni or call 832/519-TONI (8664)
