You may want to wait to claim Social Security.
You can file for Social Security as early as age 62.
Is this a good idea?
According to a recent CNBC article titled “This is when it makes sense to claim Social Security early,” claiming at this age could mean you will decrease the amount you will receive over your lifetime.
Waiting until full retirement age will allow you to claim the full benefit for your work record.
What is full retirement age?
It will be either 66 or 67 depending on when you were born.
Waiting until age 70 will also allow you to claim even greater benefits.
Your benefits will grow by 8 percent each year until you reach age 70.
What does this mean?
You could bring your benefit up to 132 percent.
Does it ever make sense to claim early?
If you are single or terminal, it would make sense to file early.
What about if you are married?
It still may not make sense.
This could reduce the benefits your spouse would receive.
How are survivor benefits calculated?
These are influenced by the amount of Social Security accrued and the age a person dies.
If you wait, you will accrue more credits.
The amount the surviving spouse receives will also depend on when he or she chooses to claim the benefit.
When can a widow or widower file for benefits?
He or she can file as early as age 60.
Waiting until full retirement age will allow him or her to claim the full benefit for the deceased spouse.
Your spouse could claim your benefit at full retirement age and the let his or her benefit grow until age 70.
Are there any other benefits to delaying your benefits?
It may help with your annual cost-of-living adjustments.
These are based on the higher benefit amount.
Have you ever heard that “good things come to those who wait”?
This is generally true when it comes to social security.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: CNBC (June 19, 2018) “This is when it makes sense to claim Social Security early”