For many Americans, Social Security is the largest share of their retirement income. That’s why it’s important to separate myth from fact. Here’s what you need to know.
Some people take benefits early because they’re afraid they won’t get their share, but there’s really no “right” time. Age 62 is the earliest you can collect retirement benefits, but collecting before full retirement age could reduce your benefits up to 25% to 30%. Waiting until age 70 you could increase your benefit by up to 32%,1 but may not be an option if you need this income for living expenses. When you file for benefits should be based on your personal situation.
The truth is, if you have the higher Social Security benefit and are older than your spouse or expect your spouse to live longer than you, you may want to delay taking Social Security to maximize the survivor benefit if you pass away early.
If you’re at full retirement age and still working, you can continue earning benefits. However, if you’re working and receiving Social Security before full retirement age, your benefits will be lowered by $1 for every $2 in earned income above $17,640.2 To find your full retirement age, visit ssa.gov.
If you were married at least 10 years, are 62 or older and currently unmarried you could be eligible to collect spousal benefits on your former spouse’s benefit.4
To learn more about Social Security and your retirement, visit edwardjones.com/socialsecurity.
Final decisions about Social Security filing strategies always rest with you and should always be based on your specific needs and health considerations. For more information, visit the Social Security Administration website at socialsecurity.gov.
1 Based on full retirement age of 66. Source: Social Security Administration. Does not include cost-of-living adjustments.
2 $1 for every $3 above $46,920 for the year you reach FRA. Source: Social Security Administration: Retirement Benefits, 2019, ssa.gov.
3 Source: Social Security Administration, “Fast Facts and Figures about Social Security, 2019.”
4 Source: Edward Jones estimates based on CANNEX Immediate Annuity Quote System – 12/21/2018. Example assumes a joint life annuity, 66-year-old person, 3% inflation rate and the 2019 average benefit level from the Social Security Administration.