Should I Claim My Social Security Benefit Before I Turn 70?Monday, January 6, 2020
Sometimes We Can Outsmart Ourselves.
We Might Be Doing That by Waiting Until We Are 70 to Collect on Social Security Benefits.
While we don’t want to rely on Social Security as our primary post-retirement income, it can be a key to keeping us above the poverty line once we are no longer working. Americans are eligible to receive benefits when they reach age 62, but there is an incentive that pays out more money when they reach 70. Some Americans feel that waiting until that increase makes more sense, so they will continue to work until they reach that age. But, it might not always make sense to wait until that time to take advantage. Here are some reasons to claim your Social Security Income (SSI) benefit before you turn 70.
You might not collect for as many years if you wait until you are 70.
Yes, you might get more money per check if you hold out. But, if you pass at age 76, and you’ve collected for 14 years since you turned 62, you’ve collected more money than if you had waited until you were 70 and then only collected for 6 years. The increase is usually a couple of hundred dollars per month, so you have to collect for quite some time to really see the benefit of the increase. It’s not always worth it to wait.
Reductions in benefits are looming.
Payout reductions are looming above the heads of the baby boomer generation. Waiting might mean a higher monthly payment today, but by the time you get to be 70, reductions might take it back to the amount you originally would have been entitled to and could have been receiving for an extra 8 years.
Waiting that extra 8 years means surviving on your current income.
8 years is a long time to wait for that extra income. At the end of that 8 years, will $200 make a huge difference? Can you afford to live with $2,000 less income coming in to get to a $200 pay increase? For some, the answer will be 'yes,' but for many Americans, that 8-year span can make a huge difference.
We can’t make the decision for you, but when you are ready to spend your retirement years in a living facility that will help you get the most out of each day, contact McGregor. We are here to make the rest of your life the best of your life!