When to take Social Security is going to be a question frequently asked by baby boomers.
I took mine at 62, my wife will take hers when she turns 62...soon.
This scenario works for us it may not work for you... I have a good friend with a private pension and book royalties coming in... it makes good tax sense for him to wait until he turns 70 to take Social Security.
Until you turn 62, you should be receiving an annual letter from the Social Security Administration that tells you what your estimated benefit will be depending on the year that you take it.
The longer you wait the higher the benefit.
The longer you wait, the older you will be...hmmm.
If you are still working, you may be penalized depending how much you make.
For instance, in 2013, if you earn over $15,120...and take your Social Security benefit early, your check will be one dollar less for every two dollars you earn over $15,120.
Here's the info in greater detail from the government website.
You need to pay careful attention to this detail... if you are planning on supplementing your retirement income, and 82% of all baby boomer say they will when they retire you need to carefully plan how much you can make for this penalty kicks in.
It's a real kick in the pants to try to earn a little money on the side and then discover that the government rewards your initiative by reducing your Social Security benefit.
When to take Social Security?...just be aware of this fact and you won't be surprised.
The question of when to take Social Security was easy for me and will be easy for my wife when she turns 62.
We are firm believers that swapping time for dollars is not for us.
We want to go places, as you can tell we are at the Rome Colosseum above, while we are still able to get around.
It would really help if you knew exactly when you were going to die... then you could maximize every single penny from Social Security... personally I'm going to let God surprise me.
Readers know that we really enjoy to take cruises ...I shake my head when I see people on the cruise ship that have mobility issues... I think to myself that person could have a net worth of $10 million or more... it's not going to do him or her any good, maybe his or her children.
Call me cynical but it was a no-brainer to take our Social Security early.