Social security payments are one of the three legged prongs when it comes to securing your retirement portfolio. However, the age of retirement has risen in recent years,which could put a damper on your ability to collect those funds when they are needed. According to law, the full retirement age is set to be at 67 years of age. Although some may be technically eligible for hanging up the time card at the age of 62, full benefits can’t be realized until much further down the road.
While most individuals assume that they can collect either the full round or a large portion of their retirement benefits, this simply isn’t the case anymore. An elderly person who ends their career can expect to encounter a reduction of 5/9ths of a percentage per month over the course of 3 years that they are below the age to be paid their actual retirement amount. This can add up to thousands of dollars in lost income over the course of five or six years. However, a person who waits until 67 to apply for social security, will not only qualify for a complete monthly benefit, but will enjoy an annual bonus of 8% in actual paid income. As the debate between taxes on lower income earners and those with more sizable pockets, for upcoming retirees, the difference in maxing out early versus waiting, can affect the rest of their lives.
