Top Reasons to Delay Social Security
Many people look forward to being eligible for Social Security and retirement. It’s the ultimate working person’s goal. When you become eligible for Social Security, you only have an eight-year window to claim all of your benefits. It begins at the age of 62, and it cuts off at the age of 70. When you hit that full retirement age or the FRA, you’re going to be given tons of advice about filing for your Social Security. Instead of waiting around, here is a little advice that you should be considering now. Monthly Payments: If you had someone give you the opportunity to invest some of your money for a guaranteed yearly return at 8-percent, you might consider it to be a bit of a scam. However, Social Security does exactly that. Whenever you go a year without cashing in those benefits past your retirement age, you automatically get a boost that will stick for the remainder of your life. There are also no payment limits or income limits that are associated with the benefit. Fortunately, anyone who delays the benefits of Social Security is eligible for this arrangement. Living a Long Life: There is something rather interesting about Social Security that many people don’t know. That is the fact that it will pay you the exact same benefits no matter when you decide to first file. While you are waiting for your benefits, you will be boosting every payment while also collecting fewer payments.
This only works if you have an average life expectancy, but if you have a longer life with great health, you have the chance to come out ahead just for waiting. Just by waiting a bit for your benefits, you could come out ahead quite a bit then you would if you don’t delay your benefits at all. Outliving the Savings: Many workers of today are more concerned about outliving their savings than dying. Since many are behind on their savings right now, they have very few opportunities to catch up. Those nearing retirement have a low saving, which makes it difficult to live on later. If you are planning to rely on your Social Security after retirement, then you should get as much as you can from the program, which results in delaying those benefits. The more income that you have to count on later in life, the better off you will be in the future. Other Options: Sometimes, delaying the benefits of Social Security isn’t always the ideal way to go. Filing earlier actually puts money into your pocket a lot sooner, which gives you the option to invest that money. However, no investment isn’t risk-free, but the delaying benefit is a guarantee. Conclusion: When dealing with Social Security, there is quite a bit of information to take in. Whether you decide to delay your benefits or not, you can take the information above to make a confident decision about your future and your retirement. Social Security is an important part of retirement, but if you play your cards right, you could maximize your benefits for many years.
Mark Angelo is the Co-Founder of Yorkville Advisors.