If you believe in going all the way or not going at all, there’s a day to celebrate your extreme ways. July 26 is All or Nothing Day.
Not a day for the undecided, All or Nothing Day is dedicated to the idea of making decisions and plunging in. Whether it’s overcoming an agonizing fear, trying something you’ve always wanted to try, or making a big decision and seeing it through, All or Nothing Day is your chance to make it happen.
All or Nothing Day is a great day to think about your retirement—whether it’s right in front of you or looming on the horizon. Choosing when to retire is an important decision, but it’s also a personal choice and one you should carefully consider. There is no one-size-fits-all answer. Social Security offers a list of factors to consider in, “When to Start Receiving Retirement Benefits” available at www.socialsecurity.gov/pubs.
If you’re a young or middle-aged worker, and still have time to ponder this decision. But don’t wait to begin saving for your retirement. Start saving now and go in all the way. The more you save, the more comfortable your retirement can be. Remember, Social Security retirement benefits were not intended to be your sole source of retirement income and planning early makes for a comfortable retirement.
Social Security provides two top-rated online tools to help you plan. First, the Retirement Estimator, which gives immediate and personalized retirement benefit estimates. The Estimator is convenient and secure, and lets you create “what if ” scenarios. For instance, you can change “stop work” dates or expected future earnings to create and compare different options. Check it out at www.socialsecurity.gov.
Another great tool is your Social Security account. You can get instant estimates of your future benefits and verify that your earnings history is correct. Visit www.socialsecurity.gov/myaccount and create your account to help plan for retirement.
You can get Social Security retirement benefits as early as age 62, but if you retire before your full retirement age, your benefits are reduced, based on your age. If you retire at age 62, your benefit would be about 25% lower than if you waited until you reach full retirement age. Find out your full retirement age by using our Retirement Age Calculator at www.socialsecurity.gov. You may keep working beyond your full retirement age. If you do, you can increase your future Social Security benefits—up until age 70.
There is one more way that choosing to keep working can increase your benefits. If you receive benefits, and if your latest year of earnings turns out to be one of your highest years, we refigure your benefit and pay you any increase due. For example, in Dec. 2014, you should get an increase for 2013 earnings if those earnings raised your benefit. The increase would be retroactive to Jan. 2014.
Applying for Social Security retirement doesn’t have to be an “all or nothing” decision. Whether you want to retire at age 62, your full retirement age, or even later, you can apply when you feel like it. When you’re ready to take that plunge, you can apply online for retirement benefits at www.socialsecurity.gov.