When it comes to registering for Social Security, you have a great deal of flexibility in terms of the choices you can make.
You can start receiving benefits as early as age 62, or you can wait until age 70 for a greater monthly payment. By age 70, you are not even required to file for Social Security. Simply put, there is no financial incentive to file beyond that date.
When To Claim Social Security Payments?
You should now be aware that after you reach your full retirement age, you are entitled to your entire Social Security payout based on your personal earnings record. Those born after 1960 reach this age at 67.
Submitting prior to the full retirement age implies accepting a reduced monthly payout for life. The earlier you file, the more your monthly benefit will be reduced.
For instance, if you enroll at age 62, you will lose 30% of what you would have received at the full retirement age of 67. In this scenario, if you file at age 64, you will only lose 20% of your monthly payment.
Clearly, there is a financial risk associated with lowering your Social Security benefit payments for life. Nonetheless, despite this disadvantage, there are a number of compelling reasons to begin receiving benefits early.
For Health Improvement
Doing a full-time job does not always entail neglecting one’s health. But, full-time employment can be demanding and leave little time for activities such as sleep and exercise.
Early claiming of Social Security may enable you to switch to a part-time job at a younger age so that you can focus on your health. And that could save you a fortune in medical expenses in the future.
The decision to apply for Social Security benefits should not be rushed. Evaluate your filing age carefully in all instances.
You should be aware that claiming benefits prematurely to your full retirement age may be the best course of action for you, despite the fact that doing so reduces a substantial source of lifetime income.
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To Start Second Career
Perhaps you’ve spent your entire life working as an accountant when you’ve always desired to do something more artistic, such as painting or writing jingles.
Early Social Security benefits could allow you to explore a new career while you still have the energy and motivation to succeed.
To Establish A Business
Beginning a business is a risky proposition that is likely to need a great deal of time and effort. By claiming your Social Security benefits early, you will be able to fund the launch of your business.
Therefore, you’ll be able to focus on your business without having to balance it with a full-time position. In addition to being a rewarding activity for older people, business ownership may also be highly lucrative.
Your Social Security payments will be reduced if you claim them early; however, if your business is successful, you may be able to more than make up for that loss over time.
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