On the surface, it would seem that the decision to begin collecting Social Security retirement benefits is a straight-forward one – take the money as soon as possible.  However, for many people, taking their Social Security retirement benefit as soon as they become eligible may not be the best alternative.  Since signing up for Social Security benefits prior to full retirement age permanently reduces monthly benefits, there are a number of factors to consider prior to making this very important decision including the following:

• At what age do you anticipate retiring completely?

• How will your spouse’s Social Security benefit be impacted by your decision to take your benefit?

• What impact will other income (earned income, pensions, investment income, etc.) have on your benefit?

• How much, if any, will your benefit be taxed?

• Are there health issues to consider?

• How will your overall retirement plan be impacted by accepting or delaying Social Security?

The Social Security Administration has a number of handy tools that can calculate your projected benefit amount at varying dates on their website at www.ssa.gov.  Several calculators, as well as, information on a variety of retirement options are discussed on the site.

While the Social Security site is helpful, the information provided can be overwhelming.  Making the most of this decision requires careful consideration of a number of variables including tax, cash flow and even elder care issues.  If you need help understanding your options, Beacon is here to help! 

Beacon Financial Strategies is available to help you determine when it makes sense for you to begin receiving Social Security retirement benefits and how that decision impacts your overall financial plan. Through our Retirement Feasibility Analysis, we address the very personal decision of when to collect Social Security benefits.  Contact us today so we can discuss your options.