“should I delay my social security and let my wife draw it until my FRA? I planned on drawing at 62 anyways. I am retired navy and invest in TSP, also disabled. I hope this make sense.”
Social Security is an important part of retirement planning for many Americans, including federal employees. This guide will help you understand when to start receiving your benefits and how it affects your retirement income.
When Can You Start Getting Social Security?
You can start getting Social Security as early as age 62, but your monthly benefit will be smaller if you start early. Your Full Retirement Age (FRA) is between 66 and 67, depending on when you were born. If you wait until your FRA, you’ll get your full benefit amount.
The Effects of Claiming Early or Waiting
If you start receiving Social Security before your full retirement age (FRA), your monthly benefit will be reduced. For example, if you start at age 62, your benefit could be about 25-30% less than if you waited until your FRA. However, if you wait past your FRA, your benefit increases by about 8% each year until age 70.
Working While Receiving Social Security
If you work and receive Social Security before your FRA, you might get less money. In 2025, if you earn more than $23,400, your benefit will be reduced by $1 for every $2 you earn over that limit. Once you reach your FRA, there are no limits on how much you can earn.
Taxes on Social Security Benefits
You might have to pay taxes on your Social Security benefits, depending on your total income. Up to 85% of your benefits could be taxed if your income is above certain levels.
Cost-of-Living Adjustments (COLAs)
Social Security benefits are adjusted each year based on changes in the cost of living. These adjustments happen whether you’re receiving benefits or not.
Social Security for Federal Employees
If you’re a federal employee under the Federal Employees Retirement System (FERS), you can receive Social Security benefits along with your FERS pension. You might want to consider using your Thrift Savings Plan (TSP) withdrawals to delay starting Social Security, which could give you higher guaranteed benefits later.
Things to Think About
When deciding when to start your Social Security benefits, consider:
- How long do you expect to live
- Your other sources of retirement income
- Whether you need the money right away
Next Steps
- Check your Social Security statement on the SSA website to see your estimated benefits.
- Review your retirement income plan, including your FERS pension and TSP savings.
- Consider talking to a financial advisor for personalized advice.
Understanding when to start your Social Security benefits is an important part of planning for retirement. By looking at all your options and your personal situation, you can make a good decision that supports your financial goals.
ABOUT THE AUTHOR
Micah Shilanski, CFP®, is a distinguished financial planner known for his deep commitment to providing exceptional advisory services to his clients. As the founder of Plan Your Federal Retirement, Micah has dedicated his career to helping federal employees understand and optimize their benefits to ensure a secure and prosperous retirement. His expertise is widely recognized in the industry, making him a sought-after speaker and educator on financial planning and retirement strategies.
Micah’s approach is client-centered, focusing on creating personalized strategies that address each individual’s unique needs. His work emphasizes the importance of comprehensive planning, incorporating aspects of tax strategy, investment management, and risk assessment to guide clients toward achieving their financial goals.