Hey! Today, we want to talk about how to decide what age you want to start collecting social security benefits.
Benefits can be collected as early as age 62 or as late as 70, though full retirement age depends on when you were born. If you choose to wait, your benefits will increase long term, although most people don’t wait past 70 as by then there is no significant change in what you receive after that.
It’s helpful to estimate your life expectancy to maximize what you receive. The breakeven age is when the total benefits equal the same amount despite different start times.
For example, two people of similar ages and financial backgrounds may choose to start collecting three years apart. While the second person had to wait three more years to start collecting, eventually they could earn more over their lifetime than the person who did not wait.
Remember, the longer you wait, the shorter amount of time you’ll receive benefits, but the payments will be larger. See you next time on Money Matters!