Are You Waiting To Claim Your Social Security

Are you waiting to claim your Social Security until age 70? According to a recent survey, 90% of Americans are not. Although most pre-retirees are aware that waiting will result in higher payments, 9 out of 10 are planning to claim their benefits at age 62 or age 67. There are positives and negatives to both waiting versus claiming benefits the minute you can. 

By waiting until age 70 to claim your benefits you risk not living long enough to see a dime. It happens. Yet if you are of great health and can avoid serious accident or illness, claiming Social Security at 70 will increase your monthly payment by as much as 30%. That’s a big increase. 

On the other hand, claiming benefits early at age 62 means taking a financial hit. The IRS gave a good example online. If you were to retire this year at age 67 and take full retirement you will receive $4,018 per month. At age 62 your payment would only be $2,831. And at age 70 your payment would increase to $5,108. 

Even mathematicians agree. The best time for you to claim Social Security benefits will depend on your specific situation. Some people must take early retirement because they need the money to live. Others retire early because they’d rather receive monthly benefits for a longer period rather than receive higher payments later in life. If you desire freedom from the 9 to 5 and can live within your means, take early or full retirement. If you love working and are comfortable financially, waiting to claim your social security at age 70 makes perfect sense. 

If you have questions about retirement planning, contact Alloy Wealth at 800-689-3935.