2 things to know about Social Security benefits.

The Social Security Administration determines your full retirement age based on your birth year. For example, the retirement age is 66 for people born in 1945, 66 and two months for people born in 1955, and 67 for people born in 1960 or later. 

But you don't have to wait until your full retirement age to claim your benefits, nor do you have to start collecting the minute you reach it. Here are two things to keep in mind as you prepare to apply for Social Security: 

1. Look into your spousal benefit. It may be a good idea to apply for a spousal benefit rather than one in your own name as primary earner. This is worth examining if the overall earnings of your spouse or ex-spouse were higher than your own. (Note: Benefit payments to a spouse or ex-spouse do not affect the amount paid to the primary earner.)

2. Later is better. The Social Security Administration allows you to retire—and claim your benefit—any time after you reach age 62. However, your monthly payment at 62 may be as much as 30 percent lower than it will be if you wait until you reached full retirement age. A $1,000 monthly retirement benefit, for example, would drop to as low as $700, and a spouse’s $500 benefit would fall to $325. On the flip side, benefits increase for each month you work past full retirement age until you reach age 70. 

Given that fewer retirees are receiving defined benefit pensions, Social Security has become an important component of retirement income. 

This article is provided for informational purposes only. For information regarding your particular situation, please contact the Social Security Administration (https://www.ssa.gov)

This educational third-party article is provided as a courtesy by Septian Arnold, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Septian Arnold on Facebook