You have been working hard all of your life and deserve to have a nice retirement that you can sit back and enjoy. While you worked hard to pay the bills, take care of children, and keep up with the rest of your obligations, retirement is the time to sit back and travel, do some of the hobbies you love, and perhaps spend some time with those grandkids. After working so hard, many people consider applying for social security benefits at age 62 to get a head start on their benefits rather than waiting until the full retirement age.
There are many benefits to receiving your benefits at age 62, but this is not something that you should jump into lightly. The professionals at Coastal Business Services can help you to make the right decision on receiving the benefits early. Some of the things we will consider with you include:
To Get the Money Earlier
Some people just like the idea of getting their retirement money early. They know that they worked hard for that money all their lives and they don’t like the idea of the government holding onto it for any longer than it should. They consider applying for social security benefits at age 62 so they can take it easier and enjoy their retirement a bit earlier or they may worry that something may happen to them and they won’t get the full amount that they paid in.
While this is one reason that many choose to get their social security benefits a bit earlier, this is not always the best option. You should consult with a professional at Coastal Business Services to find out if this is the right course of action for you. In some cases, if this is the only reason you are going for your benefits earlier, it may be best to wait a few more years to claim the benefits.
Health Issues
Individuals who are dealing with extreme health issues may consider taking out their benefits early. Having this monthly income allows them to stop working so they can focus on their health and make it to all their appointments. While they do have to take a reduction in their benefits, the benefits may still be more than they would be able to make in between sick days, appointments, and other necessities with their health condition. Or, if they are having trouble with mobility, they may not be able to work at all and even the reduced benefits are better than no income.
If you are experiencing health issues that make it hard to work, applying for your social security benefits at age 62 or before the retirement age may be the best option for your needs to help you bring in an income even while you’re sick.
Won’t Make Enough
In most cases, you will need to make above an annual limit to make it worth your time to continue working after the age of 62. This annual limit changes with inflation and other factors each year so you will have to check to see where it is at when you turn 62. If you are not going to be able to make above that amount in the year, it is often best to take out the retirement early because you won’t really make that much more by waiting a few years. The professionals at Coastal Business Services will be able to look through your income, and projected income, to determine if taking out the social security benefits a bit earlier is the best choice for you or if you should consider working for a bit longer.
Short Life Expectancy
Your social security benefits are determined based on how many years you are expected to live after you start taking out your benefits. This is why you are able to get more the longer you wait; there are fewer years between your death and the age of 70 than death and the age of 62. But, for some, their life expectancy is not as long as the average figured out for social security. If your family is not known for living very long or you are dealing with a health issue that could severely shorten your life, it may be a good idea to take out the benefits a bit earlier so you can get the most out of them possible and enjoy your retirement.
When you are ready to think about retirement, make sure to contact the professionals at Business Coastal Services. We are here to help you with all your tax and social security benefits. Whether you are just in the beginning stages of thinking about early benefits and need help crunching the numbers or you have made a decision and need help with the paperwork, our professionals are here to help you every step of the way.
Understanding your social security benefits is often confusing. While you may have been paying into these for years, many people don’t understand how much they should receive or the tax implications of their benefits. When you are ready to apply for your social security benefits, whether you are 62 or at full retirement age, make sure to contact Dennis O’Brien at Coastal Business Services, LLC in Farmingdale, NJ. Our professionals can help you determine if retiring at 62 is the right choice for you and can work on all your tax needs in relations to these benefits. Contact us today to get started.
