Hi!
This is Rob Young, owner of Blue Dot Wealth Management.
In the last video we dispelled two myths about Social
Security. One: that it was designed to replace most of one's pre-retirement income.
And the second, whether you'd have to pay taxes on social security benefits.
Today we're going to bust 2 more social security myths. The first one:
Full retirement age is at 65.
Most people think of 65 as their magic number for full retirement, and for a long time that
was the case.
However, because our life expectancy has increased since Social Security was introduced, the age
that hit "full retirement" has gone up.
If you were born in 1937 or earlier, your full retirement age was 65.
If you were born between 1937 and 1959, you will reach full retirement at age 66 and if
you were born in 1960 or later, you will reach full retirement at age 67.
Once You Start Taking Social Security, You Can't Change Your Mind.
I hear this a lot and the answer is...
Actually, you can.
There are many scenarios so I am only going to talk about one.
Let's say you file for benefits at 62 when you first become eligible.
Because you are claiming Social Security before full retirement at the age of 66, you get a 25% lifetime
reduction in benefits.
Let's say you flunk retirement and get a job that you actually want or you receive
a windfall and no longer need the money.
If you withdraw your application with the first 12 months of filing, you can pay back
the benefits you've received, interest free, and erase the 25% reduction. For taking your benefits early
When you finally do claim your benefits, you get whatever you're due at the age you apply.
I have a passion for helping people, so please subscribe to get notified when the next Financial
informative video is uploaded, and as always we're here for your individual questions
and attention.
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