10 Reasons You Should Claim Social Security Early
Financial experts almost always recommend people delay starting Social Security monthly benefits as long as possible to maximize the amount. Benefits increase each month of delay past 62, with the largest increases of 8% annually from 67 to max age of 70. But is that strategy right for all? Michael Keenan of Yahoo Finance says no and has 10 scenarios where claiming early would make most sense. They are: 1. You’re Planning Your End-of-Life Care; 2. You Have a Shorter Life Expectancy; 3. You Need To Pay Down Debt; 4. You Can’t Work Anymore; 5. You’re Only Working Part Time; 6. No One Else Is Relying On Your Benefits; 7. You Already Have Your 35 Highest-Earning Years; 8. You Expect Your Investments To Grow Faster Than the Increased Benefit; 9. You Want To Start a Business; and 10. You’re Concerned Social Security Will Disappear. It should be noted that the last point is often cited by other experts as a ruse, in that yes the program is headed for insolvency but taking benefits early because of that is still not in people’s best interests. Full analysis of each point is here in the full article.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.