When it comes to deciding when to start receiving retirement benefits, there’s a significant advantage to delaying Social Security claims.
Delaying Social Security Benefits
When it comes to deciding when to claim your retirement benefits, there’s a significant advantage to delaying your claim. By waiting until your full retirement age (FRA) or even beyond, you can secure a higher monthly benefit and potentially enjoy a more comfortable retirement.
If you choose to start receiving Social Security benefits at the age of 62, you’ll receive a reduced monthly amount for the rest of your life, Motley Fool reported.
However, if you delay your filing past your FRA, you have the opportunity to boost your monthly benefit. For example, if your FRA is 67 and you wait until age 70 to claim Social Security, your monthly benefit will increase by 24%.
Although delaying your claim means you may need to continue working for a longer period, the long-term rewards can be significant.
Delaying Social Security Benefits Improves Retirement
A recent survey by Edward Jones found that retirees who filed for Social Security later in life reported a significant improvement in their retirement compared to those who filed early.
Among those who filed late, 43% stated that their decision had a positive impact on their retirement, while only 31% of early filers felt the same.
Consider your retirement goals and aspirations. If you dream of extensive travel or simply want to maintain a comfortable lifestyle without financial worries, delaying your Social Security claim could be the key.
Making a short-term sacrifice by continuing to work can lead to a higher monthly paycheck for the rest of your life.
Working longer not only increases your Social Security benefit but also allows you to save more. This can provide you with additional options and financial stability and security once you do retire.
Furthermore, a delayed Social Security filing can help compensate for a lack of savings. Many individuals struggle to build a robust retirement fund due to various financial obligations.
By opting for a later claim, your higher monthly benefits can help offset the need to withdraw larger amounts from your savings. Ultimately, this approach can help alleviate financial stress during your retirement years.
In conclusion, while it may require some sacrifices in the short term, delaying your Social Security claim can result in a more comfortable and financially secure retirement. Take the time to weigh your options and consider the long-term benefits of waiting to claim your benefits.