Social Security Benefits
Full retirement age is 67; claiming at 62 reduces benefits; waiting to 70 raises them.
What is Social Security Benefits?
For anyone born in 1960 or later, full retirement age (FRA) is 67. Claiming at 62 permanently reduces the benefit to about 70% of the full amount. Delaying past FRA earns credits of 8% a year up to age 70. Depending on other income, up to 85% of benefits can be subject to federal income tax. A spouse can receive up to 50% of the worker's full benefit.
Social Security Benefits: a worked example
A $2,000 benefit at 67 becomes about $1,400 if claimed at 62, or $2,480 if delayed to 70.
More terms in Clients, Strategy & Tax
Sole Proprietorship
A business owned by one person with no legal separation from the owner.
General Partnership
Co-owners share management and unlimited liability; income passes through.
Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.