When it comes to retirement decisions, perhaps the biggest is deciding when to claim Social Security benefits. Many people know they can get more each month by waiting until age 70, but that could cost them a lot in the long run. The Motley Fool has broken the pros and cons of taking benefits earlier rather than waiting.
The basic mathematics is this: waiting until you reach your Full Retirement Age (FRA) of 67 means you will get the full monthly benefit. If you decide to claim at the earliest age of 62, you will receive 30 percent less each month. However, waiting until age 70 will earn you a 24 percent bump over the FRA amount.
It may seem like a no-brainer, but it ultimately depends on your overall health and normal life expectancy. Taking benefits early will mean you get more checks and money over the course of a normal lifetime. Waiting until later if your health is less than average may mean you will collect less.
Retirement Should Not Be a Time of Stress
More retirement income provides seniors the cushion they need in tough economic times. That’s one reason why Council of Seniors is working tirelessly to get Congress to pass The SAVE Benefits Act. Because the annual Social Security cost-of-living adjustment (COLA) has shortchanged seniors in recent years, we need Congress to act now. If we succeed, the amount of $581 will be returned to those who are eligible.
Signing our petition is the first step to take to help.
Do you plan to wait to claim Social Security? Leave us a comment and let us know.
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