Electing Delayed Social Security Retirement Benefits – Part 3

How to do it

Decide whether you want to delay receiving retirement benefits by comparing your options

You can estimate your retirement benefit online using the Retirement Estimator calculator on the Social Security website (www.ssa.gov). You can create different scenarios based on current law that will illustrate how different earnings amounts and retirement ages will affect the benefit you receive.

Consider the following questions before making your decision

Why do you want to delay receiving retirement benefits?

Can you afford to delay receiving retirement benefits, or do you need Social Security retirement income as soon as possible?

Do you expect to live long enough to benefit from delaying your retirement benefits?

How important is it to increase the amount of survivor income available to your spouse?

Apply for delayed Social Security retirement benefits

Three months before you’re ready to retire, fill out an application for benefits with the SSA.

Tip: Don’t forget to apply for Medicare benefits at age 65. See Questions & Answers.

Tax considerations

If you continue to work past normal retirement age, you will continue to pay Social Security or selfemployment tax on your covered earnings. Even though your earnings may increase your AIME (and thus your retirement benefit), you may not be able to recoup those payroll taxes.

Questions & Answers

If you delay receiving Social Security retirement benefits, can you still receive Medicare at age 65?

Yes. Anyone age 65 or older who is entitled to receive Social Security benefits is eligible to receive Medicare, even if he or she has not yet filed an application for Social Security benefits. However, enrollment in Medicare is automatic only for individuals who apply for Social Security retirement benefits at age 65. If you elect to delay receiving retirement benefits, remember to apply for Medicare benefits when you turn 65.

Can you delay receiving Social Security retirement benefits until you’re 71 or older?

Yes, but there’s no advantage to waiting longer than age 70 to begin receiving Social Security retirement benefits. You can earn the delayed retirement credit only up until age 70. In addition, if you want to work, any money you earn from working after age 70 won’t decrease your Social Security retirement benefit. So why wait?

Article courtesy of Forefield.Securities offered through NPB Financial Group, LLC. A Registered Investment Advisor/Broker-Dealer Member FINRA, MSRB, and SIPC