Two things you need to know about Social Security

Something very important to you celebrated its 80^th birthday this year: Social Security, the government insurance program that provides benefits to retirees, disabled individuals and families of retired, disabled or deceased workers.

A whopping 88 percent of Americans ages 65 and older receive Social Security payments, yet a recent report from AARP and the Financial Planning Association showed that most people fail to maximize this important source of retirement income. Making the right decisions about Social Security can make a huge difference in your future quality of life, so even if you never learn anything else about it, remember these two things:

You don’t have to claim Social Security benefits at 62. While this is the most popular age to start collecting Social Security, waiting until full retirement age (67 for those born 1960 and later) will increase your monthly benefit by 30 percent. Holding out until age 70 boosts your payments by another 24 percent. Here’s an example of how this would impact a retiree eligible for a monthly benefit of $1,000:

• Starting at age 62: $700/month
• Starting at age 67: $1,000/month
• Starting at age 70: $1,240/month

For a 20-year retirement, the difference could be as much as $129,600. Wow!

There’s more to Social Security than just your own retirement benefit. There are spousal and survivor benefits, too, and you may be eligible if you’re married, divorced or widowed. These benefits can sometimes be more than what you’d receive based on your own working record, so it pays to find out if you qualify. Consider working with a financial advisor or accountant to make sure you choose the option that will give you the highest benefit amount possible.

Two out of three seniors rely on Social Security for most of their retiree income. The more you know about the program, the better you can position yourself for a comfortable retirement.