Sixty-six may not seem like a milestone birthday for most Baby Boomers. After all, it’s not a nice even number and doesn’t coincide with your fiftieth high school anniversaries.
However, anyone planning on having a sustainable retirement will want to be mindful of it – for three critical reasons.
The Motley Fool’s Maurie Backman has more:
1. You’ll be eligible for your full monthly Social Security benefit
Though your Social Security benefits are based on your 35 highest years of earnings on record, the age at which you file for them will also determine how much you collect from the program each month. If you retire at what’s known as your full retirement age, you’ll collect the full monthly benefit your earnings history entitles you.
For those born between 1943 and 1954, the Social Security Administration has designated 66 as full retirement age, which means that if you’re reaching that milestone this year, you’ll be entitled to collect your Social Security benefits in full (whereas if you were to file even a couple of months early, you’d reduce your monthly payments, and quite possibly for life).
Of course, that doesn’t mean you need to rush to file on your birthday, either. In fact, if you delay your benefits past full retirement age, you’ll boost them by 8% for each year you hold off up until you turn 70. Therefore, if you’re still working by the time you reach 66, you might let those benefits grow a while longer and increase them on a permanent basis.
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