We work our entire lives with an eye on the big prize, that day when you can leave that job and begin enjoying the fruits of your lifetime of labor. In addition to savings and pension plans, the Social Security Administration forms a critical component in forming your retirement plans.
While subject to the political debate that always seems to accompany a discussion of the importance of Social Security as part of the overall compensation package, changes in existing rules also influences the ability of seniors to adequately plan for their future.
Also impacting such planning is the changing demographics of an aging population. For that reason, the age when people can begin drawing from their Social Security account has steadily inched up over the years.
What is The Best Age to Begin Drawing From Social Security?
Unfortunately, the age at which you should begin drawing from your Social Security account is best answered by knowing how long you will end up living. Absent this critical bit of information however, which remains a surprise for al of us, deciding when to dip in those funds is problematic. Generally speaking, later is always better when trying to maximize the amount of money you can draw from the system.
The threshold for collecting your Social Security benefits begins at age 62 assuming that you have worked at least ten years prior to beginning collection. When timing your retirement, you have an eight year window between ages 62 and 70 to begin drawing benefits. While you can retire at any time either before age 62 or after 70, drawing the funds that you have worked for can only begin during this time of your life.
The Social Security Administration has slowly inched up to determine what “Full Retirement Age” is from an initial estimate of 62 to the current age 70 plateau. The longer you wait to begin accepting benefits, the larger the monthly cash payout you will enjoy.
Needless to say, and it is a morbid approach to assessing your benefit program, but if you think that you will be shedding your mortal coil sooner rather than later, you will want to begin accepting your payments earlier rather than later. Should your heath condition suggest that you have a longtime ahead of you, you will want to delay accepting those payments until closer to your 70th birthday.
It’s Like Picking Winning Lottery Numbers
For obvious reasons, no one wants to think too deeply about the their death schedule, but doing so is the key to knowing that you will not run out of money prior to running out of breath. Speak with your financial advisor and health care professional so you will be able to make a sound financial decision based on facts that will affect your ability to enjoy your retirement years.