You may be eligible to sign up for Social Security any time after you reach the age of 62, but there are various reasons for holding off. Review these suggestions from Disability Associates, LLC, to be sure that you are making the proper decision regarding when you sign up to for Social Security.

Social Security eligibility begins after the age of 62. This means that you can sign up at any convenient time after this point. You must be aware, however, that the timing of when you sign up could become costly in terms of monthly payment reductions. The following age guidance can help you make the best decision about when it is the right time to register.

Signing up when you are 62…

This is the earliest that you can sign up to receive Social Security benefits and the most popular age to do so. However, if you sign up at this age, you face receiving reduced payments depending on when your full retirement age is. Many individuals want to begin to receive payments as early as possible, which influences them to sign up early. However, you could face as much as a 30% reduction in your monthly payment if you do so, relinquishing a significant amount of money in the long-run.

Signing up when you are 63 or 64…

The payment reduction is lessened when you sign up for Social Security at age 63 or 64, rather than age 62, but there is still a reduction. In fact, these are unusual ages to sign up, according to statistics: less than 10% of men and women sign up during this time. If you do, you may still be losing out on up to 20% of your allotted monthly payment.

Signing up when you are 65…

Though 65 used to be the full retirement age, people born after 1943 cannot claim full retirement benefits until age 66 or 67 depending on what year they were born. Those who are eligible for full retirement at 66 will only suffer a 7% reduction if they sign up at 65, whereas those who qualify at age 67 will sacrifice over 13% of their monthly payment.

Signing up when you are 66…

If you were born between 1943 and 1954, you qualify for full retirement at the age of 66. This means that you can sign up for Social Security and receive unreduced payments. According to surveys, a third of all men and women sign up for Social Security at their full retirement age. If you are not eligible until the age of 67, and you sign up a year early, you will face a 6% reduction in payment.

Signing up when you are 67…

Individuals born after 1959 are eligible for full retirement at the age of 67 and can receive unreduced payments. If you were eligible at the age of 66 and decided to wait, you can receive up to an 8% increase on your payment each month.

Signing up after the age of 67…

Each year that you delay signing up for Social security after your full retirement age, you are entitled to a certain percent increase in monthly payment. This means that if you wait until you are 70 years old to sign up, you will increase your monthly payment by 32%.

If you were born after 1959, reach full retirement at the age of 67, and wait to sign up, you are also entitled to an 8% increase in payment for each year that you delay. However, payments do not increase if you sign up after the age of 70, so the maximum benefit you could receive for waiting to sign up is 24%.

Essentially, the later you can wait to sign up for Social Security, the better your monthly payments. But you may not be able to wait additional years to collect your benefits. The best way to determine the right age for you to sign up for Social Security is to consult with an experienced member of Disability Associates, LLC. We can help to better explain the benefits and costs and how it could affect your life. Contact us today for more information.