When you take Social Security is an important decision.
While Social Security can be helpful in retirement, it will not cover all of your expenses.
Nevertheless, any extra amount in retirement helps.
According to a recent a Financial Planning article “The 1 reason not to delay Social Security,” when you take Social Security may make a difference.
In most cases, waiting will be a better idea.
After reaching full retirement age, which varies depending on your birth year, you could increase your monthly payouts by up to 8 percent per deferred year.
Are there exceptions?
One reason is if you are in poor health or have a terminal illness.
Although you will receive a smaller payout if you begin at age 62, you may receive more than had you waited until full retirement and died within a few years.
Remember, your Social Security payouts will not be enough to sustain you either way.
What should you do?
Review your financial plan and talk about it with your loved ones.
During this planning, you should consider other sources of income.
What are some options?
One is an immediate annuity.
You could create a health savings account, as well as an individual retirement account.
If you qualify, a Roth IRA may be a good option.
You may also be able to change your status from W-2 employee to 1099 in order to create a SEP IRA.
Whatever you elect, do not delay.
If you have not begun retirement planning, start now with the expert assistance of a financial advisor.
Reference: Financial Planning (October 25, 2018) “The 1 reason not to delay Social Security”