Social Security offers flexibility in choosing when to start receiving benefits. You can claim them as early as age 62 or wait until your full retirement age for a larger monthly payment. For those born in 1960 or later, full retirement age is 67.
You can also delay receiving Social Security beyond your full retirement age, which increases your monthly benefit by 8% for each year you wait, up until age 70.
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Choosing the right age to file for Social Security benefits is crucial since it directly impacts your monthly income. Before making a decision, there’s one easy step to take.
Understand Your Financial Situation
It’s common knowledge that filing for Social Security before your full retirement age reduces your monthly benefit, while delaying increases it. However, if you’re unaware of your specific benefit amounts, it’s challenging to make an informed choice. So, gather that information.
To do this, simply create an account on the Social Security Administration’s website. Here, you’ll find your personalized earnings statement.
This statement provides vital financial details tailored to you. It not only estimates your monthly Social Security benefit at full retirement age but also breaks down the benefits at various filing ages. With this information, you’ll be able to see the potential reductions or increases based on your chosen age to start receiving benefits.
For instance, you might think about filing early to access your money sooner. However, once you realize how much your benefits would decrease, you may reconsider. Conversely, if you are hesitant to delay your claim, seeing a significant increase could motivate you to hold off on filing, even if it means working longer than initially planned.
A Pivotal Choice for Your Retirement
Your decision regarding when to file for Social Security may be one of the most significant financial choices you’ll face, shaping your retirement lifestyle. Rather than base this decision on incomplete information, explore all the details about your Social Security entitlement. Knowing your benefits allows you to create a realistic budget for your retirement expenses, making it easier to decide when to file.
Unlocking Hidden Social Security Benefits
Many Americans find themselves behind on their retirement savings. However, some little-known strategies can enhance your retirement income. For example, one simple trick might add as much as $22,924 to your annual benefits. By understanding how to maximize your Social Security advantage, you can approach retirement with greater confidence. Click here to learn more about these strategies.
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