A growing proportion of working Americans say they want to claim their Social Security payments early despite continuing to work as a result of inflation, recession concerns, and uncertainty regarding the future of the program.
The elements influencing this trend and the benefits and drawbacks of imitating it are listed below.
Americans Opting For Early Social Security Claims
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According to a 2022 study by the Nationwide Retirement Institute, 42% of Americans said they intend to apply for Social Security before reaching full retirement age while also working, up from 36% in 2021.
Workers who have contributed to the retirement system can begin receiving Social Security benefits as early as age 62, but doing so may result in a monthly benefit check that is up to 30% less than what they would receive at full retirement age, which varies depending on the year of your birth and is between ages 66 and 67.
Read more: Major Social Security Cuts Back In Discussion
Maximizing Benefits By Delaying Filing
A retiree can enhance their Social Security benefit by delaying filing past the full retirement age by 8% per year, up to a maximum of 70 years, increasing their benefit at that point.
The administration estimates that as of February 2023, the average monthly Social Security benefit for all retirees will be $1,693.88.
The average payment at full retirement age of 67 would be $1,782, whereas the average check for a 62-year-old retiring this year would be $1,247.40.
Read more: Taxation’s Effect On Diminishing Social Security Benefits