Budgeting Mistake: Claiming Social Security Too Soon

Some early retirees rush to claim Social Security when they’re 62 years old because it’s the earliest possible stage to get benefits. Other seniors choose to wait until they reach the full retirement age, which is around 66, depending on today’s older workers.

But if you decide to still work part-time when you’re retired, or you have enough earnings from savings to be able to pay living expenses, it’s worth holding off on Social Security until you reach age 70. If you do, you’ll automatically get an 8% annual boost in benefits.

And while a strong investment portfolio might also deliver an 8% return, delaying Social Security is an excellent way of achieving risk-free 8% growth on your benefit payments.