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When you Should Apply for Social Security to Maximize your Benefits!

would you be happy with just 70% of the

retirement benefits that you worked your

whole life to build up some people are

but others are unaware that their timing

on filing for benefits could literally

cost them thousands hi there I'm

Danielle Roberts national social

security adviser certificate holder and

co-founder here at boomer benefits in

this video we'll discuss how your

decision on when to apply for Social

Security retirement benefits can impact

the amount of your monthly benefit check

permanently if you are filing for

traditional Social Security retirement

benefits not disability or widows

benefits the earliest age that you will

be eligible to begin receiving benefits

is 62 you can file for those benefits as

early as 61 and nine months your first

check will then arrive in the month

after you tane age 62 but here's where

it gets a little tricky

you don't attain age 62 until you've

been age 62 for an entire calendar month

so if your birthday is June 23rd you

will be eligible in the first full month

afterward which is July and your first

actual payment will arrive the following

month in August it is generally

recommended that you should apply for

benefits three months before you wish to

begin receiving them so you can begin

benefits as early as age 62 you need to

understand how finally earlier than your

full retirement age will reduce your

monthly benefit check you will reach

your full retirement age based upon the

year in which you were born people born

between 1943 and 1954 attained their

full retirement age at 66 if you're born

later than this Social Security adds two

months for every year later that you

were born so for example someone born in

1955 will attain their full retirement

age of 66 and two months while someone

born in 1956 will attain full retirement

age at 66 and four months and anyone

born in nineteen sixty year later will

attain full retirement age at 67 this

sliding scale is based on some

legislation that was passed years ago to

try to help Social Security stay in good

financial shape by changing the age at

which beneficiaries reach their full

retirement the legislation helped to

extend the number of future years that

Social Security would be able to

continue paying out

important benefits the Social Security

website offers a number of great online

calculators to help you determine your

benefit level based upon when you file

there are many people who decide to file

for Social Security as early as they

possibly can even though they know this

reduces their monthly benefit check

however be aware that this benefit

reduction is permanent for example

someone who reaches their full

retirement age of 67 can file for

benefits as early as 62 but their

benefit will be permanently reduced by

30% consider this example with some

actual figures for you based on her

earnings record Mary is eligible for a

$2,000 monthly benefit at 67 when she

will reach full retirement age however

Mary retired early and like many

retirees she could really use that extra

income at age 62 to help her make ends

meet when she files for Social Security

benefits to begin at age 62 her monthly

benefit will be permanently adjusted

down to $1400 a month there are other

factors that might also impact a

person's benefit amount this could be

the spouses benefit or even an ex boss's

benefit if he or she was married to that

spouse for 10 years or more for purposes

of this video though we are just looking

at the basics of what you can earn based

on your own work record now let's

consider on the other hand that Mary has

the means to wait until age 70 to file

for benefits she will earn 8% per year

for every year that she waits to file so

this would result in a permanent 24%

increase in her monthly benefit since

her benefit at her full retirement age

would have been 2000 Mary will now take

home two thousand four hundred and

eighty dollars a month for the rest of

her life this is a significant increase

and maybe well worth waiting for if Mary

has the means to do so we recommend

discussing your Social Security benefits

with your financial planner to plan when

you should file considering your

personal needs budget and any other

income you may have from retirement

savings another consideration in when to

file should certainly be your spouse if

you have a higher benefit check and you

pass away your spouse will be able to

collect 100% of the benefit that you

were taking home or eligible to take

home upon

your spouse's full retirement age so if

you delayed enrollment until age 70

before filing for Social Security you

are also increasing the amount that your

spouse or mine your children can someday

receive if you pass away we call this

maximizing your Social Security benefits

for your family and it should be a

consideration in your retirement

strategy oh and one last thing about

delayed retirement credits waiting

beyond age 70 will not increase your

benefits any further so plan to file no

later than age 70 another consideration

and when to apply for Social Security is

whether you currently have any income

due to a full-time or part-time job many

people work well into their 60s these

days and Social Security will only allow

you to earn so much per year before they

begin withholding benefits in 2020 you

can earn up to eighteen thousand two

hundred forty a year in the years before

you reach your full retirement age if

you go over this amount Social Security

can withhold $1 in benefits for every

two dollars that you go over the limit

the allowed annual earnings go up

considerably during the year of your

full retirement age in 2020 you can earn

up to forty eight thousand six hundred

in the months before you reach that full

retirement age and if you go over that

limit they will withhold $1 for every $3

earned one good thing is that you don't

permanently lose those dollars instead

Social Security refactor x' them into

your future retirement benefits also

once you reach full retirement age there

is no longer any annual earnings test

you can earn as much income as you like

after that and you will still receive

your full monthly benefit check once you

determine at what age you'd like to

begin drawing benefits you can then

decide when to actually complete the

application if you are turning 62 the

earliest you can apply will be three

months prior to your birthday month if

you're older than 62 you should apply

for months before you expect to get your

first benefit check for many years it

was necessary to go down to the Social

Security office in person to file for

these benefits but today you can still

file in person you also have other

options which will require less of your

personal time you can call Social

Security at one eight hundred seven

seven two one two and three to request

an application or even easier

you can apply for your retirement

benefits and Medicare by the way at SSA

gov during your application Social

Security will gather a considerable

amount of information about you this may

include the birth dates and marriage

dates for you and your spouse you may

need to present your original documents

like marriage licenses birth

certificates tax returns bring in your

w-2 for the last couple of years and

you'll also want your bank account

information so that you can set up

direct deposit of your benefits one way

that you can be ultra prepared for your

Social Security application is to review

your earnings records each and every

year while you're still working you

should sign up online for an account at

my Social Security gov and you can log

in then and review your earnings history

because eventually your benefit will be

determined by the top 35 years of annual

earnings during your lifetime sometimes

though work records don't get matched to

the right person you might find that

Social Security's records show you had a

year with zero earnings even when you

know you did work and you did have

income that year logging in to your my

social security account each year to

review this will help you to correct any

errors as you go along instead of trying

to get payroll records from a former

employer many years after you work for

that employer one last thing to consider

when determining when to apply for

Social Security is your Medicare premium

people eligible for Medicare will see

their Part B premiums deducted monthly

from their Social Security check every

year here at boomer benefits we meet

hundreds of retirees who are turning 65

getting ready to sign up for Medicare

and are completely unaware that Medicare

isn't free in fact in 2020 the average

Medicare beneficiary will pay 140 for 60

per month for Part B and people with

higher incomes can pay substantially

more for Part B as well considering that

the average Social Security check is

around $1,400 a month your Medicare Part

B premium alone is likely to eat up at

least 10% of your monthly retirement

income benefits consider also your

Medicare benefits only cover about 80%

of your retirement health care costs

most beneficiaries sign up for Medicare

supplement coverage and also a Part D

drug plan both of which will cost

additional premiums you want to research

all of this ahead of time and have a

good ballpark estimate for how much you

will be spending on your health care

cost each month

once you are on Medicare if you were

turning 65 and this concerns you you can

always consider waiting an extra year to

to file for Social Security so that you

can earn some of the delayed retirement

credits we discussed earlier this will

increase your monthly Social Security

benefit and help to offset some of those

Medicare costs now that you know more

about when to apply for Social Security

you may be wondering when you should

apply for Medicare check out this video

to learn more about that and thanks for

watching