Every American that has paid into the Social Security system needs to know the ages in which SS decisions need to be made.
There is that age in life when you find out you are paying into the Social Security system. It is usually a very early age, around the time you get your first job.
Then you forget about it, except for every time you look at your paycheck stub.
But then comes the age when you start thinking about the money you put into the system and you realize you are going to get that money back, at least the way government rules stand now.
And then you begin to realize that there are steps along the way to receiving Social Security that you need to pay attention to.
Brian Kuhn of credit.com wrote a step-by-step, age-by-age explanation of what you should do in anticipation of receiving your Social Security benefits. Kuhn’s story appeared on Yahoo! Finance, and began with:
As you read this, you should be making plans for your retirement if you have not already done so. If you are under the age of 50, there are no steps required related necessarily to Social Security, but how you plan for retirement will affect when you begin to take your Social Security benefits.
Again, the age of 50 is more for retirement planning than Social Security concerns. At 50, Americans can defer taxes on as much as $24,000 in 401(k) plans, 403(b) plans and the federal government’s thrift saving plan. The same is true for $6,500 in IRA or Roth IRA contributions. Both numbers are higher than the limits for those under 50. There are restrictions, so it is best to speak to a professional in regards to how the rules affect you.
As of July 8, 2015, this is the age when Americans can begin to receive Social Security payments. However, at this age your Social Security payments are not only lower than they would be later in your life, but they can be affected by whether you are still working. In a Spectrem's MIllionaire Corner survey of affluent investors, 35 percent said they planned to wait until they could receive full Social Security benefits before applying, while 17 percent said they would begin receiving benefits the first chance they got.
This is the age historically considered “old age’’, and what it means to you is that you can sign up for Medicare three months before your 65th birthday for coverage to begin the month you turn 65. However, if you are receiving Social Security benefits at this time, your Medicare bill will come out of you Social Security payment.
If you were born in 1960 or later, the age of 67 is when you can get full Social Security benefits and continue to work without penalty. For those born before 1960, the age is earlier.
At age 70, if you have not already done so, you must begin receiving Social Security benefits.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.