- Full retirement age is 66 for Social Security purposes for those born between 1943 and 1954. You can draw your retirement benefits at 100 percent of the primary insurance amount as shown on your Social Security statement at that age. The Social Security Administration mails this statement to your residence annually to keep you informed. You do not have to draw retirement benefits at that age. You can receive benefits at any time between age 62 and 70, or you may choose not to collect benefits at all.
- You may choose to collect Social Security retirement prior to your full retirement age, but consider the effect first. You receive about 25 percent less in monthly benefits if you collect at age 62. You also establish the benefit base for your survivors when you collect benefits early. Social Security restricts those collecting on the work history of another to the amount the worker would collect if alive. If you accept early retirement, your survivors will receive a percentage of the early benefit amount, not your full retirement benefit. You also pay a penalty for combined income in excess of a certain amount when you take early Social Security benefits. Combined income is your adjusted gross income from your federal income taxes plus nontaxable interest and half of your Social Security benefits. That amount is $14,160 in 2011. This penalty does not apply at full retirement age and after.
- Waiting to collect Social Security after age 66 adds to your monthly retirement annuity. If you wait until age 70, you receive about 30 percent more each month than at age 66, and about 55 percent more than at age 62. If you do not need the income or if you choose to work past full retirement age, late retirement may be appropriate for you. Social Security adds nothing to your account after age 70. Social Security actuarial studies show that you collect about the same amount, whether you start at age 62 and receive less per month over a long period, or wait until 70 and receive a larger monthly payment over a shorter amount of time. Base the choice on your health, your needs and maybe even genetics for a long life.
- Apply for Social Security benefits three months before the date you want benefits to start. You cannot apply before you are 61 years and 9 months. You can estimate your benefits with the retirement estimator software on the Social Security Administration website. You may apply online, by telephone or at your local Social Security office. You need your Social Security number, birth date and employment information from the past year. You also need your bank account number and routing information to receive direct deposits in your bank account. You may select payment by the electronic card through Direct Express or even get your check by mail, although this is not as safe.
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