When Should You Start Claiming Social Security Benefits?
One of the most consequential financial decisions a family child care provider can make is when to start claiming Social Security benefits.
You can begin receiving Social Security benefits as early as age 62, or as late as age 70. The longer you wait before collecting Social Security, the higher your monthly benefit will be.
Some family child care providers may want to collect Social Security benefits as soon as possible because of immediate financial needs, bad health, or other family considerations.
Waiting to collect also has its rewards: for every year you wait to collect after your full retirement age (age 66 or 67) your benefit will grow by about 8% a year. That's a lot.
The Social Security website has an Retirement Estimator that can help you determine what your benefit will be depending on what age you start collecting benefits.
But, this estimator doesn't tell you when is the best time to claim your Social Security benefits and it doesn't take into consideration how to integrate your spouse's Social Security benefits with yours.
To get a more accurate estimate of your future benefits, use this free online calculator:
It takes your age, marital status, and your estimated monthly Social Security benefit if you claim at your full retirement age, and tells you the best probability of when you (and your spouse) should start claiming benefits to generate the most money over your lifetimes.
The person who created this calculator also has written an excellent book Social Security Made Simple, which I strongly recommend.
As I've said, this is not an easy decision and I strongly recommend using this calculator and then talking it over with a financial advisor before you act. You can find one by contacting:
The National Association of Personal Financial AdvisorsGarrett Planning Network
These advisors charge by the hour and can help you make this important decision.
Tom Copelandwww.tomcopelandblog.com
Image credit: https://mosaicwsg.com/2020/12/social-security-whats-new-for-2021/
For more information, see my book Family Child Care Money Management and Retirement Guide.
