Courtney Elder Law Associates Law Firm, released an article discussing “Timing Social Security Retirement Can Increase Benefits For Life”, if you would like to know more Please continue  reading here.
A recent Kiplinger Washington Editors survey of 1,000 U.S. veterans between the ages of 50 and 70 determined that seven out of 10 veterans either didn’t know or underestimated the reduction in monthly Social Security benefits that comes with claiming them at 62, instead of 66. And nine out of 10 weren’t aware how much their benefit would be boosted if they waited to claim at age 70. (Some long-serving veterans are eligible for military retirement pay, but most veterans don’t serve long enough to qualify.) Eighty percent of veterans currently collecting Social Security benefits said they had claimed them as soon as they could.
The choice of when and how to claim Social Security benefits can affect the three biggest financial risks that retirees encounter: longevity, inflation, and markets. Despite that, it remains “one of the most neglected financial decisions that retirees face,” according to a recent article in The Journal of Retirement. The move to delay benefits amounts to forgoing current income in exchange for a future stream of bigger payments that last a lifetime. The longer one waits to claim, the higher the monthly benefit. In the extreme, claiming at 70 instead of at the earliest age of 62 can raise lifetime monthly benefits by 76 percent. Yet 62 remains the most popular age to start taking benefits. According to the article, approximately 50 percent women and 45 percent of men start claiming at the earliest possible age of 62. But waiting to claim pays off big time.
Additionally, a recent survey found that 77 percent of their respondents expected to receive advice regarding their Social Security distributions from the Social Security Administration. None of them were aware that the SSA is prohibited from giving advice regarding collecting benefits. Here are some facts that may help you decide on when and how to apply for these lifetime benefits.
Social Security Recipients
a.  74% of those collecting Social Security Retirement benefits are receiving reduced amounts.
~   76.4% of women
~   71.4% of men
b.  Beneficiaries over age 85 have increased by 23% in the last 10 years
~   4.0 Million 2000
~   5.2 Million 2010
c.   Greatest percentage increase in those aged 95 and older — 26%
~   304,000 in 2000
~   413,000 in 2010
d.  Over 51,000 centenarians collected SS benefits in 2010
~   Represents an increase of over 10,000 in 10 years
e.   Fifty-seven percent of SS recipients age 62 and older are women.
~ That number rises to 68 percent at age 85
f.   What benefits are women collecting:
~   41% are collecting as a retired worker only
~   29% are collecting a wife/widow’s benefit only
~   30% are collecting a combination of both benefits
Effect of Work on Early Retirement. Persons taking their retirement benefit prior to their full retirement age (FRA) will experience a reduction in their benefits, based on the number of months before their FRA that they begin to take their benefit. Full retirement age is based on your year of birth: 1937 or earlier – age 65; 1938-1942 – add 2 months per year; 1943-1954 – age 66; 1955-1959 – add 2 months per year to 67; 1960 and later – age 67.
During the early retirement period (age 62 to FRA), there is an earnings test that requires repayment of Social Security benefits when earned income (not interest, dividends, etc.) exceeds a certain level. For 2015, if the year is NOT your year of FRA, then you can earn up to $15,720 before repayment of benefits begins. Once you reach $15,720, you must repay one dollar of benefits for every two dollars that is earned.
In the year you reach FRA, the formula changes so that the exempt amount is increased to $41,880. For every three dollars you earn above that amount, one dollar must be repaid.
Early Retirement Reduction of Benefit Amount. The Social Security benefit an American would be due at 66 years old is reduced by 25 percent when he or she claims it at age 62. It is important to remember that taking benefits early on your own record will also cause a reduction in spousal benefits that are available. At age 62 the reduction for your own benefit is 25 percent, but the reduction for a spousal benefit is 30 percent.
Delayed Retirement Credits. After age 66, the benefit rises by roughly 8 percent each year that a retiree delays claiming — up to age 70. (Example: If someone was due $1,200 a month at age 66, she’d only get $900 a month if she started Social Security benefits at 62. But she’d be due $1,584 a month if she claimed at age 70.)
Four Claiming Strategies.
a. Claim and Suspend (or File and Suspend)
• Worker who has attained FRA applies for his or her benefit and suspends receipt of benefit.
[Note: You may only suspend receipt of benefits after reaching FRA.]
• This enables Spouse to file a restricted application for a spousal benefit.
• No spousal benefits may be claimed unless the Worker has applied for a benefit.
b. Claim Now, Claim More Later
• Spouse, at her FRA, can claim 50 percent of Worker spouse’s benefit Amount.
• At Spouse’s age 70, at the latest, Spouse claims on her own work record, having collected
delayed retirement credits for whatever period of time she waited.
• [Note: If Spouse files before FRA, the “deeming rules” require her to file for all types of
benefits to which she may be entitled. She could not choose spouse’s benefit over her own.]
c. Do Over
• A claimant is entitled to rescind his/her claiming decision within 12 months of beginning  to receive benefits, and claim later.
• All benefits received after initial filing must be repaid
• Any taxes paid on the benefits may be reclaimed.
Note: If you suspend your retirement benefits and if you are enrolled in Medicare Part B, you will be billed by the Centers for Medicare & Medicaid Services (CMS) for future Part B premiums. These premiums cannot be deducted from your suspended retirement benefits. If you do not pay the premiums timely, you may lose your Part B Medicare coverage. You will have the option of automatically paying the bill from an account at your bank or financial institution.
Exception: If you also receive benefits as a spouse or ex-spouse, Medicare can deduct your Part B premium from that benefit payment.
d. Stop-N-Go
• An Individual takes early retirement benefits, but suspends benefits after reaching FRA.
• This would enable delayed retirement credits to accumulate, but on the reduced early
retirement amount (because the claimant was taking early retirement benefits).
The core issue when considering the combination of strategies is to look to the present value of all the family benefits, rather than the break-even point for one or both people as individuals. Life expectancy and current need for funds also affect the choice of when to file for retirement benefits.
For help in determining the best Social Security benefits strategy, or with other retirement and public benefits planning, contact us online or call us today at 601-987-3000.