Is it Time to Collect Social Security?

(MYFOX NATIONAL) - As many Americans approach retirement age, one of the most common questions they have is when to start collecting Social Security benefits. While the answer may vary from case to case, most experts agree that you should wait as long as you can .

You can claim Social Security any time from age 62 to 70, but the longer you wait, the larger your monthly check. Workers can earn an extra 7 percent to 8 percent for each year they defer until age 70. Retirees who start collecting benefits at age 62 typically receive 25 percent less than they would have had they waited until they were 70.

"If you can wait from 62 to 70, you can almost double the initial benefit," Christine Fahlund, senior financial planner at T. Rowe Price, told The Wall Street Journal .

The sliding scale used to calculate benefits -- paying you a smaller monthly check if you retire "early" and more if you wait longer -- depends on the year you were born. Your lifetime payout depends on how long you live. And if you work after your retirement age, you may have to give some of your benefits back -- although retirees can reset their Social Security benefits .

You can find out when you're entitled to full benefits by checking this chart on the Social Security Administration's Web site.

While waiting to collect your benefits seems to be the right thing to do, it's not the right answer for everyone. Many factors such as when you stop working, how much you have in savings, whether you are healthy, whether you are married or single and how much you your spouse earns factor into the decision.

Also, if you're forced to start collecting sooner than you planned because of a loss of income then you should if it will help keep you out of debt.

Since you don't know how long you’ll live, your decision will likely have less to do with maximizing your total payout and more with your personal circumstances and retirement plan. Collecting early means a lower payment for the rest of your life -- and for your spouse if they survive you.

If you need the money at 62, you may be better off collecting early, but if you can wait until you're closer to 70 you'll be able to collect a bigger check.