When to Start Your Social Security Check?

Toni: 

I’ve recently been laid off and have filed for unemployment which will not even begin to pay my monthly bills.

I’ve been told I can begin receiving a Social Security check to help fill this gap because I am 63. I thought I had to wait il 66 to begin Social Security. 

I’ve called Social Security for advice and cannot get a straight answer. Social Security seems so generic with what they say.

I need a little help understanding this complex decision.

Thanks,

James, a new reader from Oklahoma.

James:

We are consistently being asked about different options regarding Social Security planning at the Toni Says® office.

There really is not a correct age or time to start one’s Social Security. Everyone needs to make this an informed decision, not an emotional one! Many are leaving thousands of dollars with Social Security because they were not aware of alternative ways to receive more in their Social Security check.

Some Social Security strategies are no longer available since Congress passed the Bipartisan Budget Act of 2015 (HR 1314) at 2:00 in the early morning hours on November 2, 2015 that made major changes to Social Security as we knew it.  These new laws went into effect on Sunday, May 1, 2016.

Below are a few mistakes to avoid when filing for your Social Security check:

• Planning for the wrong retirement age: Your Social Security retirement age varies on when you were born.   Your FRA (full retirement age) could be 66 or maybe 67 and your FRA is when you can begin receiving 100% of your Social Security benefits.  Begin receiving your Social Security check at 62 and you receive 75% plus you may also be subject to the “Excess” Earnings reduction.  Those who wait later than 66 (or 67 if that is your FRA) will receive 8% more in your Social Security check for each year that you have waited until age 70. Waiting to receive your Social Security check until 70 can amount to an increase of an extra 24% to 32% (depending on your FRA) when beginning your check at 70.
• Not thinking about your spouse: When married, there are 2 checks you need to be concerned about, yours and your spouse’s benefit check. You and your spouse can bring in extra income while maximizing both you and your spouse’s Social Security benefits. If you were born before January 1, 1954, you may still have the option of filing a “Restricted Application” for Spousal benefits delaying your benefits while taking a spousal benefit to you own benefit to “grow”.
• Not claiming a widow’s benefit: You can claim a widow’s benefit as early as age 60 for a reduced benefit (you may also be subject to the “Excess Earning” Reduction if you file before your FRA) and delay your own to grow by 8% to age 70. There are other consideration and option if children are involved so be sure to check with Social Security.
• Not staying married at least 10 years: Make sure you are married at least 10 years to the date to make a claim on the ex-spouse’s Social Security. If you are divorced (or your ex-spouse is deceased), you were married at least 10 years, you are at lease age 62 (under your FRA will have reduction in benefit and “Excess” Earning reduction may apply) and currently unmarried, you can qualify for his/hers benefits.

Remember…Take your time when receiving your Social Security check to be sure you are maximizing your needs.

Toni King the author of Medicare Survival Guide® Advanced is available at www.tonisays.com. If you have any questions regarding this article or any future Medicare issues that you would like Toni to address, please feel free to reach out to her at 1-832-519-Toni (8664) or email at info@tonisays.com