Social Security Administration’s New Online Statements May Help You Retire Earlier


singebusinessimages / Getty Images / iStockphoto

Social security administration recently posted social security statements for the first time. One of the most important new benefits of having statements online is a colored bar graph that displays the estimated amount of the retirement benefit in each check you would receive if you were to start taking Social Security at 62. or if you are waiting for full retirement age. from 70.

See: How an Additional $ 1,400 Check Could Help Social Security Recipients Cope with Rising Grocery Costs
Find: 10 reasons why you should apply for social security early

While the new statement highlights the extent of the reduction in benefits if you retire before age 70, it also shows that you may be able to retire sooner than you thought.

The amount of money you receive in your Social Security check depends on a number of factors, the most important of which is when you decide to start distributions. The amount of money you receive in each check can vary up to $ 800 if you decide to start at 62 instead of 70. The full retirement age is around 65-67, depending on the number of years you have worked and contributed to the system.

Often overlooked, if you start taking Social Security at 62, you get locked into that payout amount, notwithstanding the COLA increases, to which you are still entitled. For those who claim Social Security at 62, your benefit will be around 30% less than if you wait until full retirement age.

Many think that the amount they receive from Social Security simply increases as they get older, but the amount you receive over time is more or less the same – the noticeable difference being how much is in. each more check you wait to retire.

The redesigned wording makes this difference much easier to understand, and the simple colored graph removes any discrepancies between the three different possible stages of retirement.

See: Rising cost of eggs, milk and bacon makes COLA Boost social security worthless
Find: How to boost your monthly Social Security Income of $ 800 with spousal benefits

In addition, the new design also includes specific information sheets with other information that might have been overlooked in other versions. For example, it specifies that you must have worked for at least 10 years to qualify for benefits and that if you have less than 35 years of income, the years you are not working count as zero and may end up reducing your total. amount of benefits.

If the benefit amount you see on your estimate pages seems sufficient to allow you to retire, it might be possible to choose to do so as early as 62.

More from GOBankingTaux

This article originally appeared on Social Security Administration’s New Online Statements May Help You Retire Earlier


Comments are closed.