Your Social Security

It seems like everyone I talked to has a different opinion on
when they would be eligible for Social Security. Some younger
folks said that they couldn't retire until they were at least
70. A lot of older folks believe that they can't start drawing
their Social Security until they reach 65. They are all
partially right.

I'm not going to get into whether or not Social Security will
survive the next few years. There are too many factors that
could save it or destroy it, and most of them live in
Washington, DC. I am simply going to give you the current status
of your Social Security eligibility.

It is true that there are different full retirement ages
depending on when you were born. However, each person paying
into Social Security can start drawing their partial retirement
at age 62. The chart below indicates at what age you can retire
and receive your full benefits.

Year of Birth

Note: Persons born on January 1 of any year should refer to the
previous year.

Full Retirement Age

1937 or earlier - 65

1938 - 65 and 2 months

1939 - 65 and 4 months

1940 - 65 and 6 months

1941 - 65 and 8 months

1942 - 65 and 10 months

1943--1954 - 66

1955 - 66 and 2 months

1956 - 66 and 4 months

1957

66 and 6 months

1958 - 66 and 8 months

1959 = 66 and 10 months

1960 and later - 67

Visit http://www.ssa.gov/retirechartred.htm to see the complete
chart of Social Security Full Retirement and Reductions by Age

By the chart above someone born in 1955 can start receiving the
full benefits at age 66 years and 2 months. If they choose to
retire between age 62 and 66 years and 2 months this benefit
will be reduced based on the number of months they retire early.
If they chose to retire after age 66 years and 2 months the
benefit will increase.

Each person has to decide at what age they want to start
receiving their Social Security based on their individual
circumstances. Here is something to consider: Based on my own
situation, if I wait until I am 66 years old to draw my full
Social Security I will be about 72 years old before I draw as
much money as I would have if I had started drawing my partial
Social Security at age 62. It's something to think about.

Besides retirement benefits, Social Security also covers
disability and death benefits. This is a fairly complicated
program but it might not hurt to learn as much as you can by
visiting the Social Security web site. You can also request a
Social Security Statement which includes a record of your
earnings history and an estimate of how much you and your
employer paid in Social Security taxes Estimates of benefits you
(and your family) may be eligible for now and in the future.

Social Security was never intended to be your only source of
income after you retire. In most cases your monthly check will
only be a fraction of what you were earning before retirement.
It would be wise to start a savings and investment program as
soon as possible to ensure that you have enough money when
retirement rolls around. This link may help get you started:
http://beginnersinvest.about.com/mbody.htm