The earliest you can start receiving Social Security benefits is age 62, and in some situations, doing so can be a wise choice.
For instance, filing for benefits as soon as possible can help you retire earlier if you’re eager to get a head start on retirement.
It may not be the best choice for everyone, though. While there isn’t a one-size-fits-all method for figuring out when to file for Social Security, there are a few significant factors that could make you regret taking it early.
1. Your Retirement Funds Might Run Out
Your monthly benefits will be lower the earlier you file your Social Security claim.
You must wait until you reach full retirement age (FRA), which ranges from 66 to 67 depending on the year you were born, to file for benefits based on your work history in order to receive your full benefit amount.
The benefit amount you receive if you file when you are 62 will be permanently reduced by up to 30%.
Smaller Social Security checks might not be that important if you have a substantial retirement fund that can easily last you the rest of your life.
However, you might have to rely solely on Social Security if there’s a chance that your savings will run out during retirement.
Most people find it difficult to get by solely on Social Security. As of June 2022, the monthly average benefit for retirees is approximately $1,670.
Making an early claim could lower your monthly payments by hundreds of dollars, making it even harder to make ends meet.
Making the most of your retirement income is also crucial given the rising cost of living.
According to a study by The Senior Citizens League, the purchasing power of Social Security benefits has decreased by about 40% since 2000.
This implies that your benefits won’t likely be as generous as they once were, and filing your claim early may make the situation worse.
2. It May Have an Impact on Your Partner’s Benefits
Your benefit amount will depend on when you start claiming, and it may also have an impact on how much your spouse will receive.
The surviving spouse may occasionally be entitled to the deceased partner’s entire benefit amount as survivor’s benefits when only one person dies.
As a result, the more you receive, the more your spouse may be able to receive if you die first — and vice versa.
It might be a good idea for one of you to put off taking your Social Security benefits if you have cause to believe that you will outlive the other so that the surviving spouse will receive larger benefits.
Even a few hundred dollars more per month can go a long way later in life, even though this isn’t the most pleasant subject to think about.
Making The Most of Social Security
Although Social Security benefits occasionally can be difficult to understand, knowing how your age affects your payments will help you plan for retirement.
Read more:-
- 7 Facts About Social Security You Should Be Aware of in 2022
- Is It Correct to Say That a Social Security Number is the Same Thing as an Individual Taxpayer Number?
- The four best California cities for a couple to live in solely on social security
While it’s not always the best course of action, filing a claim early can be wise in some situations.
Knowing the possible dangers of claiming at age 62 will help you decide if it’s the best course of action for you.
The $18,984 Social Security bonus is something that most retirees completely ignore.
If you’re like the majority of Americans, you’re at least a few years behind on saving for retirement.
However, there are a few little-known “Social Security secrets” that could guarantee an increase in your retirement income.
One simple trick, for instance, could earn you an additional $18,984 a year! We believe that once you understand how to maximize your Social Security benefits, you will be able to retire confidently and worry-free.
