Many physicians often don't give adequate thought and planning to the "when" and "how" of their Social Security benefits. This oversight might result in missing out on hundreds of thousands of dollars over their lifetime.
When it comes time to think about your Social Security retirement benefits, many physicians often don't give the “when” and “how” adequate thought and planning. As a result, such an oversight might result in missing out on hundreds of thousands of dollars over their lifetime.
Here are 4 things for future physician retirees to know when it comes time to claim Social Security benefits:
1. Your full retirement age
You are eligible to start drawing Social Security at age 62 but it often pays to wait till your full retirement age, or beyond. If you begin your benefit payments prior to your full retirement age, you will be penalized and receive a lower monthly payment.
For those born between 1943 and 1954, full retirement age is 66. For those born from 1955 to 1959, add 2 months for each year, so for someone born in 1958, the full retirement age is 66 and 8 months. For those born in 1960 and later, full retirement age is 67. Delaying benefits beyond your full retirement age will increase your benefit by 8% a year up to age 70, so there is no benefit to continuing to delay payments past 70.