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Financial Services – Social Security

When Should You Start Taking Social Security?

When it comes to Social Security, it can be tempting to take your income as soon as you’re eligible—typically at age 62.

Guaranteed monthly income is nice and you’ve likely been paying into the system for much of your working life, so you’re ready to receive your benefits.

ButSocialXSecurity it can be a costly move. If you start taking Social Security at 62, rather than waiting until your full retirement age (FRA), you will receive reduced benefits. FRA ranges from 65 to 67, depending on the year in which you were born.

For Full Retirement Age information go to http://www.ssa.gov/planners/retire/retirechart.html

In addition your annual cost-of-living adjustment (COLA) is based on your benefit. So if you begin Social Security at 62, and start with reduced benefits, your COLA will be lower too.

If you can afford it, waiting is often the better option. But, make sure to evaluate your decision based on how much you’ve saved for retirement and your other sources of income in retirement. While many people would benefit from waiting to age 70 to take payments, others may need the income sooner and may lack the resources necessary to meet expenses during the delay period.


The longer you wait, the higher your benefit.


Note: All lifetime benefits are expressed in present values, calculated using an inflation-adjusted discount rate and life expectancy of 89. The numbers are sensitive to, and would change with, the discount rate and life expectancy assumptions. (www.Fidelity.com/viewpoints)

Learn more

Let Dowd Financial Services develop a retirement income strategy for you.

Call 413-437-1038 to discuss your situation today.

Get more information from the Social Security Administration at http://www.ssa.gov/