You have a choice when it comes to signing up for Social Security. You can begin collecting benefits at any point starting at age 62. And from there, the longer you wait, up until age 70, the more your monthly benefits can grow.
Even though you won’t be forced to sign up for Social Security at 70 if you reach that age without claiming benefits, it’s generally considered the latest age to file. And you may find that waiting until 70 makes sense for you. But here are some of the worst reasons to claim Social Security at 70.
1. You think it’s your full retirement age
Full retirement age (FRA) is when you can collect Social Security without any sort of reduction. It often pays to hold off on taking benefits until FRA. But you shouldn’t claim Social Security at 70 because you think that’s when your FRA arrives. Even the youngest members of the workforce today have an FRA of 67 unless lawmakers implement a change.
2. You’re trying to maximize your lifetime income
Filing for Social Security at 70 will result in larger monthly benefits. But it may not lead to more lifetime income. If you pass away at a fairly young age, you could end up with less Social Security all in by virtue of waiting until 70 to claim benefits. If your health is in poor shape, that’s a good reason to file sooner.
3. You’re trying to grow a spousal benefit
Even if you never worked, you may be entitled to Social Security based on your spouse’s record. Spousal benefits max out at 50% of what your spouse is entitled to at their FRA. But there’s no sense in delaying your claim past your FRA. You can only grow your monthly benefits by delaying a claim based on your own earnings record. You can’t boost a spousal benefit, so you might as well sign up once your FRA arrives.
4. You think you can just tap your savings until your benefits come in
You may like the idea of a guaranteed larger monthly Social Security check for life. But if your plan is to raid your savings so you can wait until 70 to sign up, you might put yourself at risk of depleting your nest egg. And while you’ll have larger monthly benefits to fall back on, you might still end up in an unfavorable financial situation.
5. You want to make sure you’re motivated to keep working
You may have your reasons to want to keep working, such as boosting your savings avoiding some of the mental health issues that can come with transitioning into retirement. But if you have a need for Social Security earlier than age 70, you don’t have to delay your filing because you want to keep working. You’re allowed to claim Social Security and collect a paycheck from an employer at the same time. As long as you’ve reached FRA, you won’t risk having any of your benefits withheld, even if you earn a lot of money.
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