Social Security:
Healthy Strategies
for Your Financial Wellbeing
B
aby Boomers turn 62 – the eligibil- It is unlikely, if not impossible, that
lower level throughout your lifetime, with
ity age for claiming Social Secu- Americans currently near or in retirement
normal cost of living adjustments.
rity benefits – at a rate of about will experience any significant reduction
In contrast, if you can wait beyond
12,000 people per day. That pattern in Social Security benefits – so under-
your FRA, your base benefit will actually
began in 2008 and will continue through standing the subtleties of claiming the
increase between 7-8% for each year you
2026 for a total of 76 million Boomers benefits you’re due can make a big dif-
wait. For some people, living on other
beginning to collect Social Security. ference in your quality of life during re-
income such as taxable savings, IRA ac-
While there’s been a lot of news coverage tirement.
counts, or earned income until they pass
about the potential bankruptcy of the There are a variety of useful strategies
their FRA can potentially be a sound fi-
Social Security system, most estimates for making the most of Social Security
nancial decision.
project that full benefits will be paid out benefits, and I’d strongly recommend
until the year 2041, when the trust will talking with your financial planner about
Working after Retirement at
be depleted and the system will shift to a the options open to you. That said, let’s
“Full Retirement Age”
pay-as-you-go basis. take a look at some of the most common
approaches retirees take toward claiming
Many Baby Boomers are not only
Social Security.
delaying retirement, but continuing to
work at least part-time after they do “of-
Delaying Your Claim
ficially” retire. But take note: If you file
for a Bigger Payout
for Social Security benefits before you
reach your FRA, but you continue to earn
You are eligible to begin receiving
income, you may reduce the amount of
retirement benefits at age 62, but many
benefits you are eligible for.
people don’t realize that if they do, they’ll
Let’s say you retire at 62 and claim
be getting a lower benefit than they would
your Social Security benefit, but then you
if they claimed at their Full Retirement
take on a part-time assignment for a for-
Age (FRA). Your FRA depends on your
mer employer at a salary of $20,000. In
year of birth: For example, if you were
2009, if you claimed Social Security, but
born in 1936, your FRA is 65; in 1946,
earned more than $14,160, your Social
it’s 66; and in 1966, it’s 67.
Security benefit would have been re-
If you claim your Social Security
duced by one dollar for every two dollars
benefit before you reach your FRA, your
you earned over the limit. In this case,
benefit level will be set at a lower rate
you would have forfeited $2,920 in Social
than if you waited, and future Social Se-
Security.
curity benefits will be based on that
The good news is that if you can wait
until your FRA, you are free to earn any
40 NaturalTriad.com
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