INmail: The best month to start Social Security benefits

Geraldine: I have a technical question. I have a client who turns 66 — his full retirement age — on Nov. 2. He plans to file for his Social Security benefits online. Should he request that his benefits start in November, December or January? If he selects his birthday month of November, will he receive his full retirement age amount or less?

MBF: Normally, the day of the month on which a person is born determines both when he or she is entitled to benefits as well as the amount of the benefit. But that’s not the case when it comes to claiming benefits at full retirement age.

Unreduced benefits are payable beginning with the month you reach your FRA, regardless of what day of the month that is, according to the Social Security Administration. In your client’s case, he will be paid starting in December.

There is a different rule for people who claim Social Security benefits before FRA.

Retirement benefits can begin the first month a person is age 62 throughout the entire month. Social Security follows English common law that finds that a person attains an age on the day before the birthday. For example, a person born Jan. 15, 2003, will attain age one on Jan. 14, 2004.

You must be age 62 throughout the entire month to be allowed to claim a benefit in the same month. Social Security deems that you will reach age 62 the day before your birthday. That means if you were born on the first or second day of the month, you will be eligible to claim the minimum benefit payable during the month of your 62nd birthday. But if you were born on any other day of the month, the minimum benefit payable would be claimed the month immediately following your 62nd birthday.

Retirement benefits are reduced for each month of entitlement prior to the month full retirement age is attained. Depending on birth year, full retirement age ranges from age 65 for some people up to age 67.

Mary Beth Franklin, a certified financial planner, is a contributing editor for InvestmentNews.