When Should You Claim Your Social Security Benefits Early? Ep #54 

<p>A client asked me, “In what scenario would it make sense to claim your social security benefit early (before full retirement age)?” Full retirement is somewhere between age 66 and 67, depending on when you were born. So in this episode of Retirement Made Easy, I’ll share a few scenarios in which it might make sense to take your benefits early. Listen to learn more!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:33] The basics of your social security benefit</li> <li>[4:40] Reason #1: You’re single and in poor health</li> <li>[8:07] Reason #2: Your spouse is significantly older</li> <li>[10:25] It all depends on your situation and resources</li> <li>[12:50] What falls under earned income?</li> </ul> <h2>The basics of your social security benefit</h2> <p>If you were born in the year 1960 or later, your full retirement age is 67. If you claim your benefit early, it will be a permanent reduction in the lifetime income of your social security. What does that mean? Social security can be thought of as a pension, where you get monthly income for the rest of your life. It’s based on the best 35 working years of your life when you make the highest income. If you have a spousal benefit, you get up to 50% of your spouse's benefit. The longer you wait, the bigger it will be. But the amount you can receive will max out at 70. </p> <p>If your spouse was a stay-at-home Mom, her spousal benefit may max out at her full retirement age, so it wouldn’t make sense to wait past that. The majority of people claim their benefit prior to hitting full retirement. Why? Sometimes it’s quite simple—they need the income. Or they don’t see the value in waiting and letting the benefit build. But when do I think you have reason to claim your benefit early? </p> <h2>Reason #1: You’re single and in poor health</h2> <p>Before your full retirement age, there are income limitations on social security benefits. Let’s say you’re 62 and you’re working but you want to claim your benefit. The SSA has a rule wher