When many people retire their benefits under Social Security often are a considerable percentage of their monthly income. It is possible to enhance your financial security by ensuring that you get the maximum out of this source of income. Making all the right decisions about what benefits to take and when to take them can make a significant difference. The problem for most people who are preparing to make their Social Security retirement claims in Chicago is the fact that the agency is fraught with complicated rules that are difficult to comprehend and errors can prove to be very costly.
One of the most confusing issues, hence one of those things that makes planning difficult is the lack of understanding of what the age is when you can retire, most people believe it is 65. The age that one can retire varies; it depends on when you were actually born. Those people who were born anywhere from 1953 to 1954 can retire with full benefits at age 66, however for those born later than 1954 the age increases in increments of two months until the person reaches 67.
It is important that retirement claims at the right time for two specific reasons. The first reason is that it is when you are eligible for full benefits and two, it is age that unlocks a number of claiming strategies that can further your benefits. For example, if an individual were to retire at 62, but their age for full benefits is 66, he or she will be hit with a 25 percent cut in the monthly benefits forever. For those who can retire with full benefits at the age of 67, they will see a 30 percent permanent cut. For those who retire at full age they can take advantage of little known strategies such as filing and suspending and other strategies those who retire early cannot. A very important consideration is that those who retire at full age can work and earn as much as they can or want to while those who claim early are subjected to an income cap otherwise they might lose some benefits.
Another issue to consider when planning for your Social Security retirement claims in Chicago is your spouse. A move that is often overlooked is the benefits available if the highest wage earning spouse was to delay benefits until he or she reaches 70, under these circumstances the benefit will earn a hefty eight percent interest per year.
