The Most Important Social Security Schedule You’ll Ever See | Smart Change: Personal Finance

(Christy Pepper)

As a retiree, it’s a good idea to rely on Social Security benefits to help you cover the cost of living. These benefits provide thousands of dollars in monthly income, and unlike your savings, you cannot run out as long as you are alive. While you can’t live on it on your own, you need to make sure that you understand how much money you are going to make, as well as how the decisions you make about it will affect that monthly amount.

That’s why this is the most important Social Security schedule you’ll ever see. The information in it makes it easy to understand how your choices affect your retirement income, so don’t make a decision about your benefits that you regret.

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This important Social Security spreadsheet will tell you everything you need to know

Every retiree gets a standard social Security The accrual is based on wages earned during their career. But seniors who don’t specifically demand their retirement checks full retirement age (FRA) You will not get this standard feature.

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The age of the FRA is between 66 and 4 months and 67, depending on the year of birth, while Benefits become available at 62. Anyone who begins receiving payments before the FRA will see a reduction in their standard benefit, while anyone who is late and does not receive the first payment until later will have a chance of increasing it.

Because payments change based on the age you claim, it is critical to make an informed decision about when you will receive your monthly Social Security retirement income for the first time. This is why this table is the most important table you will ever see. It shows how the average monthly Social Security benefit of $1,657 can be affected by filing for benefits across different ages. Depends on a 67-year-old to retire.

age claim monthly benefit Reducing/increasing benefits
62 $1160 -30%
63 $1,243 -25%
64 $1,326 -20%
65 $1437 -13.3%
66 1,546 USD -6.7%
67 $1,657 no one
68 $1,790 +8%
69 1922 USD +16%
70 $2,055 + 24%

Data source: Social Security Administration. author accounts.

As you can see, the difference in your monthly income can be quite large. Your decision to start benefits at the youngest age allowed of 62 would leave you $895 per month less than you would have received each month if you waited as long as possible Your maximum income.

What is the appropriate age to claim your benefits?

This Social Security schedule gives you insight into how the decision about when to start getting paid affects the money you’ll have to live on. It leads you to the point that if you choose to make an early payment, you’ll get much smaller checks – although of course you do get a lot of them. If you delay, your income goes up dramatically, but you lose years of money.

Ultimately, you should consider your health, how long you are likely to live, and your preferences as to whether you’d prefer to start payments as quickly as possible even if it means getting less money. This will guide you in choosing when the best age to claim is your personal situation.

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