Basically, the longer you wait to claim a Social Security benefit, the more money you will receive. Under current Social Security guidelines, the earliest age that you can collect benefits is age 62. However, benefits at age 62 are permanently reduced by 25%. For example, if your monthly benefit at age 66 is $1,000, you would receive only $750 at age 62.
If you wait until age 70 to start collecting benefits, the amount you will receive is 132% of the full retirement benefit at age 66. For example, that $1,000 benefit at age 66 would rise to $1,320 at age 70.
Obviously, many personal factors need to be considered in addition to these mathematical calculations. Key factors include a need for income, health status, and a spouse’s need for income, if married.
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