Q:

How do you determine the best age to claim retirement benefits?

A:

Quick Answer

Determine the best age to claim retirement benefits by considering financial situation upon retiring, life expectancy, marital status and gender, states Bankrate. Your age when you begin taking Social Security benefits determines the portion of benefits you receive.

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Full Answer

A person who intends on working past the age of retirement may want to delay claiming retirement benefits to receive more benefits every month, states Bankrate. Any money earned during the age of retirement could negatively impact any benefits received. There are also certain situations were taking Social Security benefits early could prove beneficial.

As of 2008, depending on the age of retirement, an individual's benefits could be reduced by as much as 30 percent if he claims benefits five years early, notes Bankrate. An individual who waits to claim his benefits a few years after the legal age of retirement could receive as much as 107 percent of his monthly benefit. While delaying benefits, a person could use funds from his personal savings account to support himself.

An individual facing a reduced life expectancy may benefit from claiming his retirement benefits early, according to Bankrate. A married woman can also potentially benefit from claiming benefits early since there's a greater chance of her outliving her husband. She can then claim either her benefits or her late husband's benefits, depending on which is larger.

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