Taking Social Security too soon
One of the biggest temptations you could face is to initiate taking Social Security benefits right after you become eligible, but way before you reach the “full retirement age”, according to the terms of the federal government.
If you jump on the occasion without thinking twice, the chances for you to wind up with a smaller check every month are higher. In theory, you should receive the same amount of benefits throughout your retirement, regardless of the age at which you decided to claim them.
The Social Security system is designed to be completely neutral in this matter.
However, if you claim it too soon, it can be risky, because once you claim those benefits, you will have to stick to the same size payment for your entire life. The amount of money you will receive monthly will never increase unless there are any inflation adjustments.
In the situation where you are the main breadwinner in the family, you might want to think twice about starting your Social Security benefit earlier, as your spouse might also receive that smaller benefit amount one day.
Having been a CPA for over 40 years and having had the experience to have actually done the tax returns of dozens of retirees, I would disagree with your initial concern of taking your Social Security too early. Of course there are a few exceptions which is why it is worthwhile to discuss your particular situation with your tax preparer or financial planner. The amount of extra money you will receive will take many years to recover even at that higher income level. Meanwhile you have had use of the money.
Cash is king always try to pay for something in person with that there will be no discrepancy about whether the funds are available or not.