DECIDING WHEN TO START RECEIVING SOCIAL SECURITY BENEFITS
It's recommended to delay receiving Social Security benefits until Full Retirement Age (FRA) of 66 or 67, as benefits are permanently reduced by about 8% for each year you start taking them before reaching FRA.
BREAK-EVEN POINT FOR DELAYING SOCIAL SECURITY BENEFITS
If you delay receiving Social Security benefits until FRA, it takes nearly 12 years to recoup the money you missed by not taking benefits early. After around age 79, you'll be financially ahead each month for the rest of your life.
LIFE EXPECTANCY CONSIDERATIONS FOR SOCIAL SECURITY
Once you reach age 65, the average life expectancy is 86 for females and 83 for males. While there's no guarantee of living that long, the odds are in your favor, making it beneficial to wait for higher monthly benefits.
WORKING WHILE RECEIVING SOCIAL SECURITY BENEFITS
If you start receiving Social Security benefits before FRA and continue to work, your benefits will be temporarily reduced if you earn more than a certain amount. For 2024, the earning limit is $22,320 before FRA and $59,520 in the year you reach FRA.
REIMBURSEMENT OF REDUCED SOCIAL SECURITY BENEFITS
Any reduction in your Social Security benefits due to earning above the limit will be reimbursed once you reach FRA. The reduction is calculated as $1 for every $2 or $3 earned above the limit, depending on your age.
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