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Social Security, What Is It?

Your social security benefits are a retirement pension arrangement issued by the United States Government. It’s supposed to help retired individuals in America receive a form of income now that they are not working anymore. Each country has their own form of social security system.

There is an age range of when you can start taking your social security benefits at full, here in America. This all depends on the year you were born. This is known as your NRA (Normal Retirement Age).

Here is an Idea of when you can receive your full social security benefits

Social Security Benefits

You Can Lose Monthly Payments from Social Security

Let’ say you are interested to take your social security benefits before your full retirement age is reached. Let’s say you decide to obtain your social security benefits check 36 months before your full retirement age. You will have to opt-in to receive a social security benefits check issued at five-ninths of 1% reduced per month. If you decide to take it even earlier, you’ll receive even less money in your checks. So be warned, if you decide to receive money before your full retirement age is meet, you will receive fewer amounts of money in your monthly checks.

This option of receiving your social security benefits check earlier should be thought out first. Make sure you assess the factors that may make you take your social security benefits check earlier, before your retirement age is meet.

You Can Make More in Monthly Payments

Unlike the previous situation, if you believe receiving your social security benefits check earlier is a valid choice for you, before your retirement age has been reached, then so be it. But if you decide to wait past your full retirement age, and between your full retirement age and 70, you can receive credit for waiting past your full retirement age. So, let’s say your full retirement age is 66, but you wait until you are 68 to tap into your social security benefits check, you could receive an 8% per year credit, multiplied by 2 due to the number of years you’ve waited.

Still, you will have to assess the factors that may play into allowing you to make the choice of waiting to obtain a higher monthly check per month, or a lower one.

So, the longer you wait to obtain your social security benefits check, the more money you will obtain from that check per month. On the other hand, if you decided to obtain your social security benefits check before your full retirement age is meet, you will receive less monthly in your monthly checks.

Some Factors for You to Consider

If you’re at an age where you may need the money, because your life expectancy isn’t that much longer, then weighing on your expenditures and how you can benefit from your social security benefit checks could give you a reasonable plan to withdraw your social security benefits earlier than proposed to you.

If you don’t see any preeminent reasons to not take your social security benefits check early, and you can do more with a higher monthly check, then this might be the case for you. You can always consult with an accountant about this situation

Having a spouse, and understanding her financial plan and situation could also help you make a better decision on whether or not you should take your social security benefits check early or not.

If You Are Still Working

If you are working, and still decide to take your social security benefits check early, this could temporarily reduce your benefits check per month as well (while being employed). But if you have already reached your full retirement age, and is still receiving an income, the money will still have a temporary reduction per month, but it will be significantly less of a deduction than receiving your social security benefits check before your retirement age has been reached.

What to Do if You Change Your Mind?

There might have been an instance where you thought taking your social security benefits early would be a benefit for you. But realized maybe waiting a bit longer could have been a better option. You can always repeal your early withdrawal of your social security benefits check by paying the government back what you have taken.

The benefit about this approach is that if you pay back in full what you have taken, let’s say in that one year you were obtaining your social security benefits check, you can payback that amount of money and decide to retrieve that money in a future date. When you obtain that money again in a future date, you will get the higher level benefit check portrayed for that age range you are obtaining it.