Columbus, Ohio – Deciding when to claim Social Security is a crucial aspect of retirement planning, with individual factors such as monthly expenses and life expectancy playing a significant role. While some individuals may opt to claim benefits right away at 62, others may choose to delay their filing.
One common Social Security decision that many retirees regret is claiming benefits at the age of 62. Although this allows individuals to receive more checks, it does not always lead to the largest lifetime benefit. The Social Security Administration reduces the monthly checks for each month benefits are claimed before reaching full retirement age (FRA).
It’s important to note that the FRA varies based on an individual’s birth year, with those born in 1960 and later having an FRA of 67. Claiming benefits before reaching FRA results in a reduction of checks, with an overall decrease in the lifetime benefit amount. Despite the popularity of early claiming, a significant number of retirees express regret for this decision, as revealed by a recent Nationwide survey.
When deciding on when to apply for Social Security benefits, several factors need to be considered. This includes the individual’s financial situation and life expectancy. While delaying Social Security may lead to larger future benefit checks, some individuals may not be able to afford this option due to pressing financial needs.
Furthermore, those with terminal illnesses or poor health may benefit from claiming benefits early. On the other hand, individuals who expect to live into their 80s or beyond may receive more money by delaying benefits until their FRA or even beyond. Additionally, married individuals and seniors with dependents need to consider how their decision will impact their family members, as spouses and qualifying children cannot claim benefits until the worker signs up.
Ultimately, it’s essential for retirees to weigh their options and choose a tentative claiming age based on various factors. Understanding the implications of early versus delayed claiming can help individuals make informed decisions that align with their financial and personal circumstances.