Eligibility for Social Security starts at 62 years of age, but claiming early may decrease the full amount receivable at the official retirement age of 66-67, depending on one’s birth year. Early benefits come with a permanent reduction in monthly payments. Your specific timing to start benefits can alter this amount significantly.
Delaying the claim until after the full retirement age can enhance the value of your retirement benefits. This is due to delayed retirement credits, which pile up until the age of 70. However, factors such as health, financial situation, and lifestyle must be weighed into the decision making.
Early claiming might shrink your retirement savings, potentially leading to financial hardships later on. It’s essential to determine the optimal time to access this fund as it greatly impacts the amount to be received. Uninformed decisions can compromise your financial safety in later years.
A section of experts opines that early Social Security claims could be beneficial for certain individuals including those with a lack of substantial savings or shorter life expectancy, or those that struggle to find later-in-life employment. But such a decision should be carefully considered in the context of one’s overall retirement plan.
Health issues or shorter life expectancies may prompt early claiming, considering that you might not live long enough to benefit from the increased amount by delaying. Current health status and family history must factor into these decisions, and a consultation with a financial advisor is recommended.
Couples with a 5-year age gap or more might find it beneficial for the younger spouse to delay claiming until their full retirement age. Even if it slightly reduces the older spouse’s benefit, it could cumulatively lead to a higher benefit for the couple. But it’s vital for couples to take their specific circumstances into account and consult with a financial advisor when deciding.
If struggling to meet basic living costs without Social Security, considerations for immediate claiming would be significant. Moreover, if your personal savings are depleted waiting for higher benefits due to immediate financial strain or if you’re in poor health or have a shorter life expectancy, early claiming could prove to be beneficial. It’s essential to critically analyze personal circumstances and financial needs.
Parents of adult children with special needs who are eligible for Supplemental Security Income might also benefit from early Social Security claims. This could result in a higher cumulative family benefit, proving to be a strategic move that ensures their children are financially protected and a steady income flow is maintained even when they can no longer earn.
