Social Security benefits were sent to more than 48 million retired workers in November, and according to historical trends, an additional 3 million workers will probably apply for retirement benefits in 2023.
For the majority of those people, Social Security is a significant source of income, yet many Americans are confused about some components of the program.
Lower Social Security Benefits
If you were born after 1960, your full retirement age is 67, and you can begin receiving benefits as early as 62. Your monthly payment is determined by the amount of payroll taxes you’ve put into the system.
To find your monthly income at full retirement age, also known as your Primary Insurance Amount, create a My Social Security account at ssa.gov.
You receive 70% of your monthly benefit at age 62, 100% if you wait until age 67, and 124% if you wait until age 70.
The typical recommendation is to delay filing as long as feasible in order to receive a higher benefit amount. In fact, if you delay collecting benefits, you may receive less over your lifetime, depending on how long you live.
A person who delayed claiming benefits at age 67 must live at least 78 years and 8 months to receive more over their lifetime than if they had claimed at age 62.
Read more: Social Security payments 2023: How to get a maximum of $4,555 per month?
Choose The Wise Decision
In order to receive more than if they had accepted it at age 62, a person who waits until age 70 must live until age 80 and four months.
Someone who does not expect to outlive their benefits may find it unnecessary to wait to accept benefits.
Accepting benefits and letting them grow if you have other investments will probably result in the highest lifetime return, especially if you retire during a downturn in the stock market.
Read more: Social Security payments: Who’s eligible for $1,822 before January 2023?
