The youngest baby boomers, born in 1964, turn 50 this year. Boomers of all ages often want to know how to maximize their financial future.
Moving toward retirement means knowing when to apply for Social Security. You can get partial Social Security for retirement as early as 62, but not as much as if you waited until your mid-60s for full Social Security.
The age to apply depends on your birth year. For those born between 1943 and 1959, you must be at least 66. If you were born in 1960 or later, you must be 67 to receive full Social Security benefits.
If you wait past your full Social Security retirement age, you can get up to 8% more for each additional year to 70. However, you will have lost some benefit and therefore must live longer to get ahead of those who took the earlier, decreased benefit.
While the Arkansas state income tax applies to some forms of retirement income, Social Security is not subject to state income tax. However, some Arkansans may have to pay federal income taxes on their Social Security if they have other substantial income.
We live in an era of increased personal responsibility for retirement. The Social Security Retirement Planner at socialsecurity.gov is a helpful resource.
Article references: Social Security Administration, socialsecurity.gov