When is the best time to claim retirement?

One of the insurance services the Social Security Administration handles is retirement benefits for its members. Deciding on when to make a retirement claim may be an important decision for some people. For many elderly people, their Social Security retirement benefits will dictate what kind of lifestyle they will have on their retirement. Some elderly people who have not saved up enough for a more comfortable retirement depend on their social security checks to provide for them during their retirement years.

There are three options available for members in claiming retirement benefits from the Social Security Administration.

Early Retirement

Early retirement benefits can be claimed at age 62. Many elderly people do not want to wait beyond this age because of many reasons. Some may already have a disease or sickness that prevents them from looking forward to an older age. Some already need the monthly benefit to support their monthly needs since they have already stopped working. Some just do not see the point of waiting longer.

Claiming your social security retirement benefit at the age of 62 reduces the amount of benefits you can get by about 20% to 30%, depending on when you were born.

Full and Late Retirement

The full retirement age is 70 years old, at which point, the Social Security Administration will give you the full benefit you are entitled to, and even get between 5.5% to 8% increase depending on when you were born. If you wait until the age of 75, there is an even bigger increase. You can visit the Social Security Administration website for more information regarding this increase for full and late retirement.

Making the decision on when to claim your retirement benefit may be based on a few key factors. Are you still working? Many people who are already in the early retirement age still choose to work. If you are still interested in maintaining some form of gainful employment even after the age of 62, then you may want to delay claiming your retirement benefit until that age when you may really need it.

You may also need to consider the state of your health during the time that you would like to claim your retirement benefit. If you suffer from a medical condition or spend a lot of time in and out of the hospital, then it may not be a very practical thing to do to delay claiming retirement. You may even use this to supplement your funds for medical support.

Are you married, and would your spouse need financial support? If your spouse has not made substantial contributions to the Social Security Administration to ensure him/her sufficient retirement benefits, you may want to delay claiming yours up to the full retirement age to make sure that you both have enough money to supplement your income when you will need it most.

Whatever your reasons for claiming your retirement benefit, and whatever time you decide to claim it, consult the Social Security Administration website to get an idea of what you are expecting. If you need legal advice regarding the matter, many lawyers specialize in that area who are willing to give you the right advice that you need.