Page 10 - 2018 How to Retire from Florida

Question #7:

When should I start taking

Social Security benefits?

Just like your FRS pension, the monthly When Do I Receive Full
Social Security check you will receive is Social Security Benefits?
based on a lifetime of earnings and a
“normal,” or full retirement age (FRA). Year of Birth Full Retirement Age
Unlike your pension, Social Security 1943-1954 66
typically awards an annual cost of living 1955 66 and 2 months
adjustment (COLA). 1956 66 and 4 months

If you choose to start receiving your 1957 66 and 6 months

benefits at the earliest possible age of 62, you 1958 66 and 8 months
certainly may, however, your income 1959 66 and 10 months
amount will be a permanent 25 to 30% 1960 67
reduction in income than if you had waited
until you reached FRA. Since the COLA will What happens if I decided to receive Social
Security before my full retirement age?
forever after be based 7
on this lower amount, If you start payments before full retirement
you may start to age, your benefit can be reduced $1 for
fall behind. every $2 earned above the earnings limit.
The earnings limit in 2018 is $17,040.
If you delay receiving
your full Social Also, if you are earning income in 2018 and
Security retirement later turn full retirement age during the
benefits, you will year, your earning limit will be $45,360.
receive an increase in The penalty is $1 withheld for every $3
benefit for every earned above the limit.
month that it is
delayed up until age
70. If you were born After reaching your full retirement age,
in 1943 or later you there are no annual earnings limit and no
will receive an 8% reduction in benefits.
annual increase in
Social Security Social Security only counts income earned
retirement benefits from employment towards the retirement
for each year you earnings test. Other kinds of income;
delay receiving full including income from rental properties,
retirement benefits lawsuit payments, inheritances, pensions,
up to age 70. investment dividends, IRA distributions
and interest; will not cause benefits to be
reduced.