Social Security

Shreveport Times - Cash in on Social Security sooner or later?

During your working lifetime, you have dutifully paid taxes toward Social Security. When the time comes to retire, will you file for your benefits as soon as possible, wait until you receive full benefits or postpone past your full retirement age to receive an even bigger check? When does it make sense to start taking benefits?

For years, the typical retirement age was 65, and there was no debate about the merits of waiting to take your Social Security; however, in anticipation of the millions of baby boomers entering retirement, the government has pushed out the age of full retirement — and the full retirement age might continue to creep upward as a means to stave off the impending shortage in the federal government's coffers.

In general, the longer you wait to file for benefits, the bigger your monthly Social Security check will be. Conversely, if you take money out sooner, you'll get less. How much less? Well, if your full retirement age is 66 and you decide to take benefits beginning at age 62 ("early" retirement), your benefits will be reduced by 25 percent.