Research shows that most people should consider taking Social Security benefits at the age of 70 rather than waiting, despite popular belief.
Maximizing Social Security Benefits
Choosing your Social Security filing age is a crucial retirement decision that can significantly impact your monthly benefit amount. While you can start claiming as early as 62, opting for this comes with a permanent benefit reduction of up to 30%. On the other hand, waiting until 70 can earn you the maximum possible payments with a bonus of at least 24%.
The Ideal Age to Take Social Security
Studies reveal that age 70 is the optimal time for the majority of retirees to claim Social Security benefits, as it can maximize both monthly and lifetime income. Research from United Income indicates that filing at age 70 could increase benefit amounts by several hundred dollars per month for many older adults.
When to Take Benefits Sooner
Although waiting until age 70 may maximize total lifetime income, there are other factors to consider when deciding on a filing age. Health and marital status can also influence this decision. Filing earlier could allow you to enjoy retirement more if health issues arise in your 70s. Additionally, coordinating claiming ages with a spouse can be beneficial.
Considering All Factors
Overall, your financial situation is a key factor in deciding when to claim Social Security benefits. If maximizing income is your priority, waiting until age 70 may be the best choice. However, if retiring earlier is important for health reasons or other factors, filing early could be preferable. Ultimately, there is more to retirement than just financial aspects.
Conclusion
In conclusion, the decision of when to claim Social Security benefits is a personal one that should consider various factors beyond just financial gains. While waiting until 70 may offer higher monthly benefits for many retirees, there are situations where filing earlier can be the better choice. It's essential to evaluate your unique circumstances and priorities when making this decision.