The decision to register for social security should not be taken lightly, as the filing age at which you land will dictate how much monthly income you will eventually collect in your final years. You are entitled to your full monthly benefit based on your personal income history once you reach full retirement age or FRA, which is either 66, 67, or somewhere in between, depending on your year of birth. However, you can claim benefits at the age of 62 or delay the submission of documents until the age of 70. The last move will increase your benefits by 8% per year, so it’s attractive to look at – especially if those circumstances apply to you.
1. You are not fired from your job
Many older people are forced to retire earlier than planned, and the unfortunate reality is that if you lose your job later in life, you may struggle to find another. But if your employer is willing to keep you and you are able to continue working until the age of 70, then this should make it possible to postpone your benefits until then, thus allowing them to grow.
2. Your health is great
As a general rule, it is worth asking for social security at an early stage if your health is not great and you do not expect to live a long life. Although you will reduce your monthly benefits, you will receive a greater lifetime benefit if you register for social security in the early 1960s and die 10 years later. But on the other hand, if your health is in the best shape and you are likely to live a long life, then the 70’s benefit declaration will not only give you more money on a monthly basis; it is also likely to lead to greater lifelong benefits.
3. You don’t save a lot of money in IRA or 401 (k)
Social security should not be your only source of income when you retire. But if you are approaching your senior years and you have forgotten to make a steady contribution to a special retirement plan, then increasing your benefits by claiming them at the age of 70 is a good way to compensate. Social security will replace about 40% of your pre-retirement income only if you are on average income. If you wait until the age of 70 to register and increase your benefits in the process, you will replace most of your previous income, thus reducing your chances of fighting a financial deficit.
What can make social security a major boost for you?
The more money you collect from social security, the more comfortable retirement you tend to experience. Remember that the increase you catch by delaying your filing will last a lifetime, so it’s worth considering a Social Security claim at 70 if that exists.
In fact, to illustrate the impact it can have, let’s imagine that you are entitled to a monthly allowance of $ 1,500 at an FRA of 67. Each year you delay your filing will lead to greater benefits until you reach the maximum value of $ 1860. This is a significant boost to the lock.
However, if you fail to delay your social security declaration by age 70, try to keep it for a year or two instead. Any amount of waiting will have an impact and one that can make your retirement much more enjoyable.