Full Social Security benefits begin at your "full retirement age," which is based on the year you were born. But, you can begin receiving reduced benefits as early as age 62. And, if you continue to work after retirement and postpone taking your benefits, your eventual benefits will be increased. What should you do?

Generally, if you retire at age 62, your Social Security benefit will be reduced from 20% to 30%. (The reduction varies depending upon the full retirement age for your year of birth.) If you retire late and choose to delay receiving retirement benefits, your benefits will be increased by a certain percentage. Again, the percentage varies depending upon your year of birth.

Some financial planners recommend early retirement. They'd rather see you get the cash today (plus the interest that it will earn) rather than wait three years or more for a bigger monthly payout. They point out that it will take a number of years after full retirement age before the extra amount that full payments offer will equal your three (or more) years of reduced benefits.

Those who suggest waiting until full retirement age or later point out that a 62-year-old person can be expected to live another 22 years. Plus, this person would also have the extra three years (or more) of earnings if he or she continues to work. They'd rather see you accumulate assets longer and receive a bigger payout down the road.

Before you decide, you should consult your professional advisor. And be sure to consider other factors–such as your health, your need or desire to continue working, and your long-range plans-before you make a final decision.

The information above is provided as a service by Security Mutual Life Insurance Company of New York. Protecting your personal and financial security is important to us. A Security Mutual Life Representative, working in conjunction with your other professional advisors, can be instrumental in helping you plan for the best financial future for you and your family. Please contact us if you have any questions or are in need of planning assistance. (Legal Notice)

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