Social Security Benefits

In determining when to start drawing Social Security (SS), there are several factors to consider. Drawing SS early results in a permanent reduced monthly benefit. Other sources of earned income exceeding annual threshold limits will also reduce your monthly benefits. Once full retirement age is attained, there is no reduction in benefits based on earnings. Another factor to consider is the taxation of the benefits. A portion of SS benefits become taxable if your total income exceeds the base amount for your filing status. Based on these factors, you may not realize any benefit from drawing early because of the reduced benefits received for drawing early, earned income limits and potential taxation of the benefits. On the other hand, drawing SS early may be advantageous in your situation because it may allow you to receive benefits that are tax free and defer drawing retirement out of other plans that are growing tax free. When trying to determine when to begin drawing your benefits, you should consider these factors as well as your life expectancy. If you need assistance in evaluating your options, please give us a call. For additional information, to apply for and/or calculate your benefits, etc., visit the Social Security Administration's website at