Have you been wondering when the best time is to start claiming your Social Security benefits? The answer isn’t as straightforward as you may think. Depending on a variety of factors, like whether you expect to live another 8 or 10 years and if you’re willing to wait for a larger incentive, it can make all the difference in deciding when it’s best for you to claim Social Security Benefits. In this blog post, Goldstone Financial Group discusses the details surrounding claiming Social Security at 62 and 70 – including pros, cons, and strategies for maximizing your benefit payouts – so that you can make an informed decision about how and when you should claim your Retirement benefits.
Goldstone Financial Group On When You Should Claim Your Social Security Benefits
When deciding to claim your Social Security benefits is an important decision, says Goldstone Financial Group. It can make a big difference to the amount of money you’ll receive in retirement, so it’s essential to carefully consider all your options before making this critical choice. Here are some key points to consider when deciding when to claim benefits:
1) Claim Benefits Early: If you decide to claim your benefits early, you’re eligible at age 62. However, if you do choose this option, keep in mind that there will be a reduction in your monthly benefit amount compared with what you would have received had you waited until full retirement age (FRA). FRA for those born between 1943 and 1954 is 66 years old; for those born after 1960, FRA is 67.
2) Wait Until Full Retirement Age: By waiting to claim your benefits until FRA, you will receive 100% of the monthly amount you’ve been estimated to get. The longer you wait, up until age 70, the more money you will ultimately receive in Social Security because delayed retirement credits increase your benefit by 8% annually for each year after full retirement age that you delay claiming benefits.
3) Consider Your Health: It can be beneficial to consider your current and expected health when making a decision about when to claim Social Security Benefits. If you have a serious medical condition, it may be more financially advantageous for you to claim early; if not, then delaying could be more beneficial in the long run.
4) Consider Your Need For Income: If you need income right away, claiming early may be the best decision for you, says Goldstone Financial Group. However, remember that the amount of the benefit you receive will be reduced if you claim before FRA.
Statistically speaking, people who claim early can expect to get 25-30% less than those who wait until full retirement age (66 or 67, depending on when they were born). Furthermore, it is estimated that individuals will receive an additional 8% in benefits each year they wait beyond full retirement age up until they reach 70 years old – bringing their total benefit at 70 to 124 percent of what it would have been at 66 or 67.
Goldstone Financial Group’s Concluding Thoughts
Overall, it’s important, as per Goldstone Financial Group, to consider the different factors that go into Social Security eligibility and determining when to claim benefits. Taking your retirement age into account, life expectancy, financial situations like inflation and cost of living, economic trends, tax deductions, disabled spouses, and survivors’ benefits can provide an immense amount of insight as to when you should start cashing out. Do your research, ask questions, and if in doubt about decisions regarding Social Security or any other retirement savings benefits, speak with a certified financial planner or another qualified professional for assistance. Proper planning before filing for benefits pays off significantly with increased financial security long-term.