I turn 66 this May. When should I file for Social Security? I'm still working full-time and my gross income was $63,000 last year.
Answers | 2
If you don't need the income, then you are better off waiting. Your benefit grows each year (up to age 70) as long as you don't take it. Once you start taking it, then your benefit only grows by whatever they deem "inflation" to be that year, usually a very small amount.
When you apply for benefits, Social Security will review your earnings history (which typically ends at age 60) and will come up with an average for your highest-paid 35 years of work. That number, after adjustments, will form the basis for your monthly Social Security check. Down the road, if your earnings in any year are greater than in one of those 35 years, Social Security will recalculate your benefits and pay you any increase that's due. But you have to ask the social security administration to recalculate your benefit amount since they automatically calculate it through age 60 and there are no auto calculations for your continued work after age 60. ...then there is the benefit of waiting to claim your benefits--but there is no benefit to waiting until after age 70. So (1) have the SSA recalculate your benefits for ALL of your working years, and (2) considering waiting up to your 70th birthday to claim your benefits.