A quick guide to Social Security benefits

contributed by Michael S. Cocco, CFP®, ChFC® of Beacon Wealth Partners, courtesy of Equitable Financial

For many of us, Social Security benefits are an important part of our retirement income, along with retirement plans and personal savings. But not all of us will get the same amount from Social Security. In fact, if you paid into Social Security and are eligible for benefits, your personal Social Security benefits will vary depending on your age at retirement, marital status, lifetime earnings history, and the year you were born.

What is your “full retirement age”?

While we often think of retirement age as 65, according to the Social Security Administration, you are entitled to full Social Security retirement benefits only when you reach somewhere between 66 and 67, depending on the year you were born:

When you reach full retirement age, you are entitled to:
· Your full core Social Security benefit
· Keep working without having your Social Security benefits reduced, regardless of how much you earn

What if you want to retire sooner?

If you plan to retire before your full retirement age, you should be aware that your benefits will decrease. While Social Security will pay benefits as early as age 62, the drawbacks of taking early benefits include:
· A smaller monthly check than you’d see if you’d waited until full retirement age.
· Benefit checks that remain that smaller amount for the rest of your life, except for cost-of-living adjustments.
· Reduced benefits, if you work even part-time.

Maximize your benefit by waiting longer

You can start taking Social Security benefits as late as age 70. If you decide to wait past your full retirement age, you could see a real boost in the payments you receive. In fact:
· Social Security will add a little bit to your benefit for every month you wait past your full retirement age, up to age 70.
· If you continue working past your full retirement age and have a relatively high-income year or two, you could substantially increase your benefit.

When to take benefits – it’s up to you!

Before you start taking Social Security benefits, consider all of the options above, how much other income you’ll have, and how Social Security will work with your other income sources.

Michael Cocco is a CERTIFIED FINANCIAL PLANNER® professional with Beacon Wealth Partners in Nutley. He may be reached at  or (973) 667-8650.

Provided by Michael S. Cocco, CFP®,ChFC® 356 Franklin Avenue, Nutley NJ, 07110 (973) 667-8650

Important Note: Equitable Advisors believes that education is a key step toward addressing your financial goals, and we’ve designed this material to serve simply as an informational and educational resource.
PPG-161124 (8/21) (Exp. 8/23)

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