social security Archives - DIYmoneytrack.com

I recently had a conversation with a friend who is 61 and considering retirement. He asked when I thought he should begin collecting his Social Security benefits. While there are many factors to consider, we started by discussing his Social Security breakeven age—the point at which waiting to claim benefits begins to pay off.

Deciding when to claim Social Security is one of the most important retirement decisions you’ll make. Claim at 62 and you’ll receive benefits sooner, but your monthly payments will be smaller. Wait until 70 and you’ll receive a larger monthly benefit for the rest of your life.

So, should you claim early or wait? Calculating your breakeven age is a simple, practical way to understand the trade-offs and help make a more informed decision.

If you’ve been collecting a regular paycheck in the U.S., then your employer has been deducting Social Security taxes. These deductions are typically itemized on your paystub as “FICA SS TAX”. Your employer matches these contributions and sends both portions to the Social Security Administration.

Even if you already know about this deduction, you may not have realized that information about your Social Security tax payments and future benefits are available to you online at the Social Security Administration (SSA) website.

If you have not already created your my Social Security account online, then you should do so as soon as possible. Read on to find out why you should set up an online account and how to do it.