30 Apr Claiming Social Security At Age 70
Throughout your lifetime you are required to be paying into Social Security Taxes. Eventually the time will come to where you want to regain that balance you have been paying that will help you greatly throughout your life after retirement. There are many steps that are crucial to having a successful retirement plan and knowing the necessary steps to take just before claiming Social Security. With that being said, there is also the correct time as to when you should be deciding to claim these benefits.
The first sign is your age. For those who were born in the year 1960 or after, your FRA is set at 67 years. Those born prior to 1960 will all have separate full retirement ages. For example, if you were born in 1957 your FRA would be 66 and ½ or 6 months old. The FRA for each year from 1959 to 1955 is different by two months. The maximum age in which you should claim your Social Security benefits is age 70.
The benefits of claiming at age 70 are second to none. Doing so will come with an 8% boost yearly for the rest of your life. This boost on your monthly benefit payments can make such a big impact on your elderly years if you are able to delay your claim until then. With that being said, this is just suggested. We understand that some people can not wait till age 70 to do so. If this is the scenario you find yourself in, then claim when you feel it is the appropriate time to do so.
Another sign to be aware of is your AGI or adjusted gross income. If your AGI is too high then there is a large possibility that you will be paying a huge tax on your social security benefits. This also depends on whether you are single and or married, income levels vary for both.
With this in mind, being able to recognize whether or not you exceed the income limit is a very important piece to know. If you are to know in advance you are exceeding the limit, then you are not ready for social security benefits as you will also be receiving a heavy tax on these benefits which sometimes can be up to half!
One thing that many claimants do not consider is their future costs as a senior citizen. Sometimes they may become more costly than you believe them to be. Delaying your benefits will only benefit you especially if you are to have a permanent 8% boost applied. Delaying till age 70 is the longest you can wait, if possible we strongly suggest you do so so that your retirement years are as comfortable as they can be for you.