November 26th, 2014 8:20 PM by Taydus Taydus
As many of us enter our "Golden Years" we find that we may have questions regarding our future real estate plans. "Do I downsize? Do I stay in my current home? How will I financially manage my real estate investments?" Financial concerns are all too common and trying to navigate our Social Security benefits can be confusing.Here is a wonderful article written by Joe Taydus of Mutual Security Mortgage here in Boulder:
How to Best Utilize Social Security Benefits
The first thing that we need to do is to give thanks that we are alive and well and in a position to consider our options for receiving Social Security benefits.
So when can you retire and receive Social Security? The answer is age 62 for early retirement. Over 56 million people receive Social Security today and 74% of those applying elect to start receiving benefits at 62.
So the question is that if you are able to receive benefits at the age of 62 why would you wait until a later date to start receiving those benefits? The answer is that if you elect to start receiving benefits at the age of 62 you get 25 -30% less than if you waited until the age of 66.
So what is the breakeven point? The answer is that you generally reach the breakeven age about 12 years from your full retirement age or 78 for the person that reaches retirement at age 66.
If you continue to work after your early retirement your benefit is further reduced by the amount that you earn. However, the SSA (Social Security Administration) recalculates your benefit when you reach full retirement and omits the months in which your benefits were reduced.
How does Social Security determine how much your benefit will be each month? The SSA starts by calculating your average lifetime earnings. The lifetime earnings are calculated by taking the 35 years in which you made the most income. You should take the time and set up an account on the SSA website at: http://www.ssa.gov
Even if you decide to defer your Social Security benefits you still must sign up for Medicare at the age of 65.