Confused about the best time to start receiving your social security retirement benefits? You’re not alone.
Let’s start with one of the most common beliefs…
You should start taking your retirement benefits as soon as you can right, age 62?
This way you can get the maximum number of checks, which means the maximum amount of money over time, right? More total checks equals more total income. You should get all that you have coming to you!
Well, not so fast. You see, if you wait until you turn age 70, you can get even bigger checks. More money in each check. Significantly more.
Social security benefits increase periodically after the earliest benefit age of 62, then max-out to the highest possible benefit at age 70.
But if you have missed out on those 8 prior years, that’s a lot of money!
So how does one know if these bigger checks will make up for, or even surpass, those 8 years of forfeited checks?
Again, it depends. That’s why so many get confused.
But it is important to make an informed decision, because the wrong choice could cost you millions if you live long enough.
Here are some factors to consider regarding the best time to start taking your social security retirement benefits:
- Your Health – if, at age 62, poor health is preventing you from working, and you need the income, this would seem like the right time to start taking your retirement benefits.
- Life Expectancy – if you have serious health problems now which you don’t expect to go away, or you have a family history (genetics) that suggest you will die before you could benefit from taking your benefits later, you might opt to begin taking them sooner.
- Financial Situation – If you currently have enough money coming in, from whatever sources, to take care of all your expenses, and you don’t need the social security money now, maybe it’s better to wait. Do factor in #2, of course.
- You Can and Want to Keep Working – “Retire to what?” some ask. If you can work, you like your job, and wish to stay actively at it, you should probably keep working and grab the social security retirement benefits later. No doubt you’ll earn more on the job than Social Security pays at 62. Meanwhile, your social security benefits can continue to grow. You can do both, of course. Within its guidelines, Social Security does allow you to work limited hours and still collect benefits.
These 4 are the most basic issues you’ll want to think about. It might be worthwhile for you to talk to an accountant, or financial advisor before making a final decision. This cost could easily pay for itself over time given the huge amount of money one could potentially lose.
Disclaimer: I have no affiliations or qualifications to give financial advice and the information above is not, and should not be considered financial advice. As the article clearly says, EVERYONE’s SITUATION is DIFFERENT! So please do seek the advice of your own financial professional regarding your social security retirement benefits.
Remember, here’s the scary part, once you take your benefits package, that’s it for life. Except for COLA (cost of living adjustments) you will never get more money in your monthly check or deposit than you take right now.
Lane Martinsen has a great video which explains this all in much better detail.
5 Good Reasons To File For Social Security Benefits At Age 62
Here’s the link to his YouTube video where he shares the pros and cons, including a discussion of the breakeven point.
Best of luck to you in the years ahead!
“Bene Vivere!”
Elderbob
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