Collecting Social Security Benefits

An individual Social Security collection decision is a personal one, but it needs to be made wisely. Fortunately, Vaughan & Co. Securities, Inc. is here to make sure you are informed when determining the right time for collecting social security benefits. Schedule a consultation with the financial planners at our advisory firm to learn more about your retirement benefit.

Collecting Benefits at Full Retirement Age

The Primary Insurance Amount (PIA) is the monthly benefit you are entitled to receive at your full retirement age (FRA). FRA varies based on the year of birth. Typically, the retirement age was set by the federal government at age 65. However, they increased the FRA for anyone born after 1937 because people were living longer. In 1937, life expectancy was less than 65. Now, it is about 78. We expect our clients to live even longer.

The Social Security Administration (SSA) uses your highest 35 years of employment to determine your Average Indexed Monthly Earnings (AIME). If you continue working after reaching full retirement age, the SSA will automatically recalculate your benefits each year as you continue to work. If your current income is greater than any of your previously calculated “highest 35 years,” your benefits will be adjusted upward. The increase is generally be made in October of the following year but will be retroactive to January 1. In addition, Social Security retirement benefits are automatically modified each year for inflation, known as Cost-Of-Living Adjustments (COLAs). For more information, please visit www.ssa.gov to get your Social Security statement.

Click on the attached PDF Files to learn more about:

Social Security Benefits
Social Security Memo

Contact us if you have questions about pre-retirement investment advising services. We proudly serve clients in Ridgewood, Bergen County, and throughout the greater Northern NJ area.