RETIREMENT AHEAD? SOCIAL SECURITY COULD BE IN FINANCIAL PLANS

CAPE GIRARDEAU - Are you thinking about retiring? Social Security could be in your plans. If you are at that stage in life when Social Security Retirement Benefits interest you, please read on.

Social Security retirement benefits can begin as early as age 62. Benefits are permanently reduced, though, if you start them before age 65, for now. But 67 will be phased in as the retirement age beginning early in the 21st century.

The reduction is 5/9ths of one percent of your benefit for each month you get Social Security before age 65. That amounts to a decrease of about 20% for retirees who take benefits at age 62 instead of age 65. The nearer you are to age 65 when you start your benefits, the closer your benefit will be to the full unreduced amount. For example, people who start receiving at age 63 will see about a thirteen percent decline in their monthly payments. Starting at age 64 results in a seven percent cut.

So, should you start receiving Social Security early and take a reduced benefit? Or should you wait until 65 so you get the full amount?

Your decision will depend on how much money you need to live on and how much you like working and other factors. But consider this. If you delay getting Social Security until you turn 65 it will take twelve years of drawing those higher monthly payments to catch up with the money you passed up before age 65.

By the way, widows and widowers don't have to wait until age 62 to get survivors benefits. Surviving spouses can receive benefits if they are at least age 60; or age 50 and disabled; or even younger if they have a child in their care.