When you are planning for retirement Social Security is probably going to be a subject that is on your mind. In fact, Social Security income is the financial foundation of most people who receive their benefit.
Exactly how much you receive is going to vary depending on how much you paid into the program over the years and when you retire. If you were born in 1960 or after you become eligible to receive your full Social Security benefit at the age of 67.
If you were born in 1954 or earlier you become eligible for your full benefit at the age of 66. People who were born in 1955 become eligible at the age of 66 years and two months, and the eligibility age subsequently rises by two months per year until 1960.
You can choose to apply for Social Security before you reach your full retirement age however. One can apply for early retirement at the age of 62, but you would receive a reduced benefit as a result.
Should you choose to do so you can also work beyond your full retirement age and gain delayed retirement credits that will increase your benefit amount when you do apply.
The maximum Social Security benefit as of this writing is $38,880 per year. This is an increase over the 2011 maximum of $37,680. It should be noted that only the first $110,100 is taxable for Social Security purposes.
If you want to be fully prepared for retirement planning is key. Should you be interested in working alongside an expert to craft a long-term financial strategy, don’t hesitate to pick up the phone to arrange for a consultation with a good Indianapolis financial planning lawyer.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.