If you’re eligible for Social Security benefits upon retirement, you have the flexibility to decide when to enroll. Starting at age 62, you can submit a claim anytime. However, if you choose to collect benefits before reaching your full retirement age, you’ll receive a permanently reduced monthly payment.
The full retirement age is determined by your birth year. For those born in 1960 or later, it is set at 67.
You are not obligated to claim Social Security at your full retirement age. You can defer your claim beyond this age, and for each year you delay, up to age 70, your monthly benefit increases by 8%. Therefore, if your full retirement age is 67, postponing your claim until age 70 can result in a 24% increase in your monthly benefits.
This leads some to advocate that 70 is the optimal age for claiming benefits. However, there are compelling reasons to consider starting earlier.
Maximizing Enjoyment of Your Funds
While claiming Social Security at age 70 provides the highest monthly benefit based on your earnings history, it may not offer the greatest personal satisfaction. Consequently, taking benefits before turning 70 could be a more rewarding choice.
Consider a scenario where you’ve diligently worked and saved for retirement, allowing you to leave the workforce in your 60s and embark on travels. You deserve to enjoy these experiences. If claiming Social Security earlier facilitates such opportunities, you shouldn’t hesitate to access benefits sooner, especially if you have additional savings to rely on.
Moreover, your health in your early or mid-60s may enable you to achieve your personal goals more effectively than at age 70. If you have saved sufficiently and can forgo the maximum Social Security benefit, it may be wise to claim earlier if it enhances your quality of life and personal fulfillment.
Prioritizing Life Quality Over Extra Income
Having access to extra money, such as a salary increase or enhanced Social Security benefits, is always beneficial. Yet, there are moments when declining additional funds is prudent.
It’s not unusual to turn down a job promotion, even with a pay raise, if it entails significantly more hours and stress. Similarly, opting out of a larger Social Security benefit may be wise if it means delaying retirement past your ideal timeline or missing out on lifelong aspirations.
For retirees with minimal savings, considering Social Security at age 70 is advisable. However, if you are financially secure, you need not feel uneasy about claiming benefits earlier, even if it means accepting a smaller monthly amount.
The Overlooked $22,924 Social Security Bonus
Many Americans find themselves trailing in retirement savings. Yet, a few lesser-known “Social Security secrets” can potentially enhance your retirement income. For instance, a simple strategy might increase your annual benefits by $22,924! By optimizing your Social Security benefits, you can approach retirement with confidence and peace of mind. Click here to explore these strategies further.
Discover “Social Security secrets” ›
