Putting off a claim for Social Security benefits is often advisable because waiting to get your first check can increase your monthly payment substantially. In fact, you can earn hundreds of dollars more per month if you delay long enough.
But while it may make sense for some people to wait, it’s not the right choice for every senior. Putting off a benefits claim obviously means foregoing the chance to get checks for months or even years. In order for late filing to make sense, you’ll want to make sure you break even for this missed money. Factor that into your decision.
The average retiree takes years to make up for missed Social Security payments
You become eligible for Social Security benefits as early as age 62, but retirees are often encouraged to wait to claim benefits because early filing reduces monthly income.
Every retiree is entitled to a standard benefit based on their work history, but they get this amount only if they start payments at their designated full retirement age. A claim before that will lead to smaller monthly payments but more checks over time. A claim after it will result in the reverse, with retirees getting fewer payments, but larger ones, over time.
Does the 4% retirement rule still hold true? Here’s how to make it work right now.
If you’re going to delay a benefits claim, you’ll be trading money you could get now in exchange for higher payments years into the future. That’s why it is so important to do the math and figure out how many of…
