Maxing Out Social Security Benefits
Once in a while you hear a statistic that is so jaw-dropping you question whether or not somebody made a mistake in passing it along. In the elder law community there is one of these that has been circulating for the past several months that is really attention-getting.
It turns out that the first wave of the baby boomer generation is reaching retirement age right around now. As a result, there are no less than 10,000 applications for Social Security being submitted each and every day. This is rather stunning, but the icing on the cake is the fact that this volume of daily applicants is expected to be a normal matter of course for the next 20 years!
With this number of people getting ready to collect Social Security questions are being asked, and because a lot of people are unprepared they're looking for ways to maximize their benefits. One way of doing this would be to delay your retirement past your full retirement age as it is defined by the Social Security Administration.
As the laws stand on this day, full retirement age for people born between 1943 and 1954 is 66. Full retirement age then graduates by two months each succeeding year until 1960. Individuals who were born during 1960 and after become eligible for their full Social Security retirement benefit when they turn 67.
However, you are not required to apply for Social Security as soon as you become eligible. You can choose to work until you are as old as 70. For each year that you work past your full retirement age you gain delayed retirement credits that are going to increase the amount of your benefit by 8% per year that you delayed applying.
If you are still healthy and able and enjoying your work, delaying retirement for a few years can maximize your Social Security benefit and give you a bit of added financial comfort when you do in fact put your working years behind you.
ABOUT THE AUTHOR: Kevin Pillion
Experienced estate planning attorneys Sarasota FL of the Co-Executor PLLC offers estate planning and business planning resources to residents of Sarasota FL.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.