October
13
Are You Accessing All of the Social Security Retirement Benefits Available to You?
Most people think that Social Security is only available to retirees when they completely stop working at full retirement age. In 2008 the full retirement age for an individual born before 1938 is 65. However, it is also possible for a person born after 1938 to apply for early retirement benefits as early as age 62. In this case your retirement benefit amount will be permanently reduced by a percentage depending upon what month and age you apply for early retirement benefits. Of course, the longer you wait to apply for early retirement, the closer your benefit will be to the full retirement amount. This doesn’t mean that this is the only decision for many people. Depending upon your age, it has been estimated that it takes 14 years to “catch up” on the missed benefits if an individual applies for early retirement. If you do not already have one, you should request a recent “earnings record” from the Social Security Administration. This details your work history and lists your benefit amounts at each age so that you can make an educated decision for you and your family.
On the other hand, an individual can delay applying for benefits until after age 65 (for those born before 1938) and possibly increase your retirement benefit amount. In this case, it is important to carefully keep track of and report your earnings to Social Security so that the benefit amount accurately reflects the additional work history. And, if you do decide to delay applying for Social Security, it is still important to apply for Medicare at the appropriate time so as not to lose out on important health insurance benefits.
An important note should be made here. Many people associate retirement Social Security with Medicare and in fact both programs are administered by the Social Security Administration. However, a non-disabled retired individual is not eligible for Medicare until he or she reaches age 65. It is important to consider this when evaluating whether or not to apply for early retirement benefits as you would need to make sure that, in addition to sufficient income, you will also have access to adequate health insurance (and the ability to pay for it) once you stop working.
In conclusion, to determine whether an individual should apply for early, full or delayed retirement benefits is best decided by carefully reading a recent earnings record and taking into account other individuals who may be entitled or seek to be entitled on this person’s Social Security account. Contact the Social Security administration with any questions or for help in making these decisions.