2. You Have a Shorter Life Expectancy
The government encourages delaying your Social Security benefits by increasing the monthly payments the longer you wait.
For instance, if you start claiming Social Security early, at age 62 more precisely, but your full retirement age is 66, then your monthly benefit will be around 75% of your full benefits. So if you’ve calculated that your monthly benefit will be $1,000 at age 66, you would only get about $750 at 62.
A larger monthly benefit definitely sounds great, but don’t forget that you won’t receive that extra $250 monthly until you reach your full retirement age, which in this scenario means waiting four years. Since you’d have a reduced amount of $750 monthly, you’d receive a $36,000 total amount during those four years.
And now let’s say you begin receiving an extra $250 per month which means you’ll get $1,000 at age 66. Well, you won’t be able to break even until after 12 years compared to claiming Social Security early. If you’re dealing with health problems and you don’t expect to reach the age of 78, you’ll earn more benefits during your lifetime if you decide to claim them as soon as possible.
30 thoughts on “Claiming Social Security Early: 8 Reasons Why You Should Do This”
Some basic information that every retiree needs to know in evaluating when to pull the trigger on Social Security Benefits. Thank you.
I looked at what my lifestyle will be when I start my SS. Early I will be more vibrant and able to do things. Also I did the simple math and found I would be pretty old by the time the I caught up with the amount I got while taking the earliest benefits.
I did the same calculation and found my break even was ~78… I elected to take it early for two reasons, it takes pressure off my retirement IRA withdrawals (especially during turbulent markets) and I can use the extra $$ to supplement my retirement while I’m still “young” enough to get out there and enjoy it… Plus, nothing (health or financial stability) is guaranteed!
There is another obvious reason that I am surprised is not cited: there will be another source of income appearing later on, such as an income stream from a very elderly parent. Better to take SS money when it makes a difference in one’s life.
We tried but were denied.
If you are 62 or older and have contributed for 10 pr more years you cannot be denied. I worked full-time for 46 years starting at age 16 (yes 16…48 hrs a week at a gas station while in HS) I took early retirement at age 61 in November 2017, And claimed benefits to start in March 2018 when I turned 62. My wife is retiring in April and just recieved her first payment this week and just turned 66 this week. If you were denied you either didn’t have enough credits were not 62 or did something wrong filing. Call Social Security and find out.
Totally correct.
Why can a widow not claim her husbands survior benefits if married 38 years if she worked for a City government and she only get $350 and she would receive $1000 on his side which would help her payoff the credit card debt he left her on her card-they say it is because of her City check is a little higher but that should not factor into it – she supported him for 38 years – WHY can’t she not get the beneft to help pay off the credit card?
She can get her social security or his, but not both. So take the larger amount!
I would suggest you first consult with a SSA Attorney, for your answers, as not to haggle or waste time….
I receive survivor/divorce benefits. You only have too have been married ten years for that to apply. When I first applied for ssn benefits, I was denied. I later found out you are susposed to file for ssd if applicable, then if you are denied present it too an attorney without worry. I went before a judge in San Francisco, on the 26th of Oct, and within two weeks the court sent me a letter of decision in my favor. Mine was a little different as I applied for my disability first, and then my retirement rolled over at age 62 if I wanted to take it. By that time I had moved to another state. But I would seek an attorney first…
You can claim either your benefits or your husbands which ever is the larger.
Because you get a pension from your city. I have the same problem and they call the city pension a “windfall” and punish you for not paying into SS all that time.
Who told you that? That is false. I have Scott retirement Check as well. I already asked this question to SS. I’ll draw his if he passes before me. His is much higher than mine. Call SS office.
It may be because of the WEP. I worked 22 yrs under SS and 19 yrs as a County Public Service worker. Because of my pension I only receive about 1/2 of what I would have gotten from SS alone. I guess the figure since I have a pension, the government is entitled to SS funds.
That was all due to the penalty on those receiving a separate pension. The social security fairness act which was just passed and signed before Biden left office is about to change much of this. Contact social security to see how it will impact you
I hope that people making the decision of when to take their social security payments know that it is taxable income(when you start receiving payments). I believe it is part of a formula, but just be aware it could increase your income taxes. So you may want to talk to/with your tax prep person or accountant????
I have worked past 16 yrs at fire depth and we do not pay into social security. So I imagine my mo benefit will be quite low even tho I made a good salary. If I wish to check my ex husband’s account to see which would be higher…how do I go about doing that? Seems they want you to do all online nowadays but don’t find where to check ex spouses numbers. (Married 16 yrs)
I’m 61 yrs old now and thinking about applying for my social security benefits when i get to 62. I have been living in the philippines for the last 10 yrs caring for my mother so i have not reported any income since. I came to the US in 89 and have been working for the better part of it. How do i apply for my social security benefits on my 62nd birthday? Yes, i am an American Citizen
If a person has been married to another person for over 30 years she deserves it!
For Gail: You said you worked for a City Government. Are you drawing a pension from that work? Did you pay into social security whole working there or did it go into a different fund. I know that government workers in some areas in Ohio pay into a separate system (ie PERS – Public Employee Retirement System) and not into social security. That impacts greatly on drawing social security benefits. Make an appointment to speak to a social security worker who can better explain to you until you understand why this is happening. And at times there can be mixups that need to be straightened out. There is an appeal process to have a situation reviewed.
My husband elected to start collecting at 62 and died a few months later from cancer. I just turned 60 and have started collecting his SS and SS disability. He was a 100% disabled vet. The monthly payment is a good amount. I decided not to wait because there’s no guarantee that I will live until full retirement age. I decided to retire and enjoy life now!
Look you all, if you don’t get smart and know what’s yours the government will spend your money in lavish luncheons and trips. If you worked they can’t deny you. I have listen to many people and a lot of them are not notified of money left for them after their spouse passed. The social security is not on your side. Remember most representatives are not trained and don’t know what they are doing. You have to research and speak up. Ask for some one else. Sue them for back pay. The government is made by humans and those humans are living up with our money.
I’m getting widow benefits. I b 62 this June. Can I file retirement at 62 am still keep getting my widow benefits????
Why retirement age is too high?? Not everyone age the same?
There is less opportunities for younger graduates? They have no job because older person still hold the
position?
Some people struggle to go to work when they are ill because they didn’t reach retirement age?.its not fair to the people who started working early age and still cannot retire until they reach retirement age? And its increasing day by day…….?.?
she didn’t mention if she was still working or had worked in the year she applied. SSA will lower the benefit by 2:1 for any amount earned in a year over the annual limit. they maybe saying that her current earninsg degraded the value of her widows benefit _right now. that happened to me. I made too much so I had to quit working and start a new tax year with zero earnings before I could claim my husbands benefits, which I did until reaching my full retirement age ++. At that time, I flipped over to my benefits which were higher then. I recommend she make an appt with SSA and go in person. I got garbage advice over the phone.
I waited to take mine until my job played out three months before I turned 70. I would have payed taxes on it if I had taken it early and my SS check would be a lot smaller now. I am 85 years old and welcome the income.
I do know of at least sixteen people who died at 65, 66 and 67. They did not choose to receive S.S. benefits until FRA. Unfortunately, they received very little in monetary benefits. One such person, the VP of our company died at 65. He was a smoker, wore boots to work which hampered his walkability, and spent all his extra money on sports cars. He worked all his life. He claimed only two checks of S S money before he passed away. One must CALCULATE the amount of money one would receive by taking benefits at 62 instead of waiting. Of course the monthly benefit is higher at FRA, but, if you do not live at least six years after you take benefits, then what good is it? DO THE MATH !!!
She can get her SS and his as a survivor benefit up to age 70. Then she has to claim one or the other.
It depends on your financial situation. I waited until 70 and I am glad I did. My goal was to get as high a benefit as possible since I will be living from month to month on my expenses. A lot of people claim early to get as much money from the system as possible; I didn’t care about that, since if I die early and don’t get the maximum benefit, why would I care at that point?
This makes sense for a married couple, that the lower earner file first. The breadwinner should delay. As a single person, I waited until age 70 to start my SS benefit and have no regrets.