Social Security (Part 4 of 6)

By Kris L. Maser

What if you apply for early for Social Security benefits?

If you were born between 1943 and 1954:
• At age 62 your benefit will receive 75% of your total benefit plus the 2.8% annual cost of living adjustment.
• At age 63 your benefit will be 80% of your total benefit plus the 2.8% annual cost of living adjustment.
• At age 64 your benefit will be 86.7% of your total benefit plus the 2.8% annual cost of living adjustment.
• At age 65 you will receive 93.3% of the total benefit plus the 2.8% annual cost of living adjustment.

However if you wait to take benefits until later (and you were born between 1943 and 1954), look at what happens:
• At age 66 your benefit will be 100%.
• At age 67 the benefit increases to 108%.
• At age 68 the increase goes to 116%.
• At age 69 the benefit increases to 124%.
• And at age 70 the benefit goes to 132%.

Where else in the current market will you get 8% return on your money? Additionally, don’t forget to calculate another 2.8% annual cost of living adjustments. If you can afford to wait (and that takes some thinking and planning), this can be quite an investment.

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