Personal Finance Topic #262 – Job Loss and Retirement – Part 4

It is better to wait to receive Social Security benefit until Full Retirement Age or later if you contributed more into Social Security System. An exception to this would be if you have a shorter lifespan. A spouse who recieves little income or none should start recieving it at 62. At age 62 it's 1,500, 66 is 2,000 plus cost of living, and at 70 is 2,640 plus cost of living. In 2012 if you are younger than retirement age and make more than $ 14,640 you get $1 deducted for every $2 on this. If you reach Full Retirment Age during 2012 you get $1 for every $3 deducted if you make over $38,880 until you reach that age. After reaching it, nothing gets deducted. A lump sum distribution can bump you into higher tax brackets. Taking out a minimum distribution amount from the Traditional IRA starting at 71.