Put away your calculators and W2 earnings statements. This is not a math lesson - thank goodness - because the math behind the calculation of your Social Security retirement benefit can be pretty complicated. That said, if you want to know the general calculations behind your Social Security retirement benefit, read on.
While a Social Security recipient can collect her retirement benefit any time between 62 and 70, that doesn’t mean she has completely unfettered access with no strings attached.
You know you're entitled to a retirement benefit from Social Security, but there seem to be a lot of rules regarding when you can actually collect it. To understand some of those rules, let’s assume we’re talking about an individual at Full Retirement Age of 66 with a Primary Insurance Amount of $2,500 per month.
With concern about the Social Security trust fund's solvency and speculation rampant that the system is bankrupt (which it actually isn't), many people wonder whether potential future changes will be directed at their retirement benefits.
We've all been there before, a perfectly pleasant and enjoyable evening at a cocktail party is progressing swimmingly. The kids are tucked in, the dishes are cleaned and put away, and the conversation is engaging. Enter wise guy, stage left. We all know who he is; the friend/relative/neighbor/co-worker who knows it all.
I was speaking with everyone's favorite skeptic, Billy Know-It-All, recently (you know, the one who claims that Social Security is bankrupt?), and he was up to his old antics again. We were discussing the optimal time for him to claim Social Security, and inevitably life expectancy comes up.
You took the money and ran, didn't you? When it comes to Social Security, most Americans do the same thing.
"I just turned 62 and am now eligible to collect my Social Security retirement benefit. Why wouldn't I take the money and run?"
The Social Security system is filled with complexity - questions ranging from when should I claim to isn't the Social Security system bankrupt to when can I collect my Social Security retirement benefit are all complicated on their own.