Social Security benefits are one of the most important parts of any retirement portfolio. A poor claiming decision can cost tens-of-thousands of dollars, while making the right decision can contribute significantly to one's financial security.
Your primary insurance amount, or PIA -- the benefit you would get at full retirement age determines the size of your monthly retirement check. According to the Social Security Administration's website, the PIA is based on the Average Indexed Monthly Earnings, or AIME, as applied to an inflation-adjusted formula. The PIA is then adjusted for whether you take retirement before or after your normal retirement age -- 66 for those now reaching retirement age, but gradually adjusted to age 67 for those born after 1960.
You can begin drawing reduced Social Security as early as 62. For every month, you delay after reaching full retirement age, up to age 70, the monthly benefit increases. However, Social Security is a complex system and we can provide the tools to help you make the best Social Security planning.