Retiring is an individual decision, and if a family is involved, a decision between you and your loved ones. A great deal depends on your current cash situation, your savings portfolio and the year designated for full retirement.
According to Social Security.gov, you can start receiving benefits at age 62, but at a reduced rate. If you retire at your designated retirement age which is different for everyone, your benefit will be higher. If born in 1955, your full retirement age would be 66 years of age.
Social Security does last as long as you live and you want to choose a retirement age that best suits your financial needs. If you reach full retirement age, you can work and earn as much as you want; still receiving your full Social Security benefit payment. In fact, you may receive higher benefits if you continue to work. If you choose to retire at age 66, lets say your monthly benefit is 1,000. If you choose to retire at 62, it will be reduced by 25 percent to $750. However, if you work until age 70, and apply for benefits at that time, your monthly amount would be $1,320.
If concerned about pension pay-outs, as long as Social Security taxes have been paid, it will not affect your benefit amount.
Even if you plan to delay receiving benefits because you are working, you can still receive Medicare at age 65 and should apply three months prior to that age.
As of October 2013, benefits for nearly 63,000 million Americans will increase 1.5 percent in 2014.
Life insurance coverage is another option for consumers planning their finances in the long-term. Such policies also come with a number of investment options that can be purchased to cover your whole life or a set number of years. Contact a financial planner to discuss your retirement portfolio so that you may plan for it ahead of time.