When do i get full social security benefits

The size of your monthly Social Security benefit depends on a few factors, including how much you earned over the years, the year you were born, and the age when you start claiming—down to the month. To find your FRA, see the chart below.

Source: Social Security Administration. It may go up over time due to cost-of-living adjustments COLAs , but only slightly. Although the cost-of-living adjustments announced each year are usually only slight increases, Social Security benefits will increase by 5. The longer you can afford to wait after age 62 up to 70 , the larger your monthly benefit will be. Other factors should be considered, including your expected longevity and whether you or your spouse plan to file for spousal benefits.

You should also consider the tax, investment opportunity, and health coverage implications. The age at which delayed retirement credits cease for those who have not yet taken their Social Security benefits. How are your blood pressure, cholesterol, weight, and other health markers? How long have your parents and other relatives lived?

If you foresee an above-average life expectancy for yourself, then you may come out ahead by waiting to claim benefits. To make an educated guess about when to claim, try doing a breakeven analysis.

The analysis can tell you when the total benefits you would receive by waiting will begin to exceed the total that you would receive by taking benefits earlier. The Social Security website will tell you that regardless of when you start claiming, your lifetime benefits will be similar if you live as long as the average retiree. The problem is that not everyone will have an average life expectancy, hence all the different claiming strategies.

As with claiming benefits on your own record, your spousal benefit will be reduced if you take it before reaching your FRA. The highest spousal benefit that you can receive is half of the benefit that your spouse is entitled to at their FRA. While spouses get a lower benefit if they claim before reaching their own FRA, they will not get a larger spousal benefit by waiting to claim after their FRA—say, at age However, a nonworking or lower-earning spouse may get a larger spousal benefit if the working spouse has some late-career, high-earning years that boost their benefits.

If the higher-earning spouse dies first, then the surviving, lower-earning spouse will receive a larger Social Security check for life. However, spouses born before Jan. It allows them to claim spousal benefits while delaying their own benefits up to age Social Security benefits can be taxable if your combined income is high enough.

Your Social Security benefits may be partially taxable if your combined income exceeds certain thresholds. The SSA defines combined income using this formula:. How do these tax considerations affect when you should apply for Social Security benefits?

James Royal. Bankrate senior reporter James F. Royal, Ph. He leads a team responsible for researching financial products, providing analysis, and …. Edited By Brian Beers. Edited by. Brian Beers. Brian Beers is the senior wealth editor at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Share this page. Bankrate Logo Why you can trust Bankrate. Bankrate Logo Editorial Integrity.

Key Principles We value your trust. Bankrate Logo Insurance Disclosure. What to consider before filing for Social Security A larger benefit check sounds great, but there are tradeoffs, and soon-to-retire folks should consider multiple issues before they decide one way or the other on when to file. So those are some potential pitfalls to claiming Social Security early. Early benefits can still pay off However, taking early benefits can still pay off despite the reduced monthly check.

Read more From James. You may also like What is the average Social Security check? These are the biggest mistakes people make with Social Security. If you have 40 work credits, you are eligible to claim Social Security once you reach age Your FRA, however, depends on the year of your birth.

For example, if you were born in or later, your FRA is 67; if you were born between and , it is If you claim earlier, you will receive less. Social Security benefits are calculated by combining your 35 highest-paid years if you worked for more than 35 years. First, all wages are indexed to account for inflation.

Wages from previous years are multiplied by a factor based on the years in which each salary was earned and the year in which the claimant reaches age This calculation gives an amount comparable to buying power based on the current value of the dollar.

Once all wages have been indexed, the average indexed monthly earnings AIME is computed by dividing the sum of all indexed wages by 35 years expressed as months. If you worked fewer than 35 years, a zero is entered for years you did not work. The benefit amount is then calculated based on factors that include the year in which collection begins, whether the claimant has reached FRA, and whether the claimant continues to work while collecting benefits.

To ensure benefits maintain their buying power, the Social Security administration adjusts them every year in accordance with changes in the cost of living, For example, as of January , the COLA will cause Social Security and Supplemental Security Income SSI benefits to increase 5. Opting to receive benefits at age 62 will reduce their monthly benefit by That decrease is usually permanent. The larger amount is due to the delayed retirement credits earned for the decision to postpone receiving benefits past FRA.

A Social Security Administration calculator can give you more personalized information. Of course, the best time for someone to start taking Social Security benefits depends on a variety of factors, not just the dollar amount of the benefit.

Things such as current income and employment status, other available retirement funds, and life expectancy must also be factored into the decision. Marguerita M. Bear in mind that this is the maximum benefit at FRA, but you can defer your benefits and increase your Social Security benefit.

You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also manage your communication preferences by updating your account at anytime. You will be asked to register or log in. In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering.

In the meantime, please feel free to search for ways to make a difference in your community at www. Javascript must be enabled to use this site. Please enable Javascript in your browser and try again. Now Reading:. Membership My Account.