MONEY MATTERS: Social Security
At what age should a person start drawing from their social security?
You can start drawing it at age 62 but it will be a reduced amount and it goes in stages. So if you were born before 1937 full retirement age is 65. Then from 1937 to I believe 1954 it's 66. If you're born after 1960 full retirement age is 67.
What are the benefits of waiting?
You can get it at 62 but 66 would be better 70 may be best. It increases each year. I know the numbers it grows about 8% a year from age 60 to full retirement age.
What are the disadvantages to taking it out early?
The thing you don't know is you're going to get a lesser amount. We've got all these fancy calculators you get on the computer and they can tell you when you should take it. But the thing we don't know is how long you're going to live. So if you decide I want to wait until 70 to take it and unfortunately you pass away at 67 or 68 you never got to utilize it. So there's a cross over point, if you start taking it early there's a point that's different for each person where it crosses over to be more beneficial.