The Downside of Claiming Social Security at 62 - Motley Fool
Fact is, most of those who claim Social Security do so as soon as they become eligible for benefits at age 62. Another fact – that is usually the worst possible time for them to do so! Although there certainly are some good reasons to claim your benefits as soon as possible – poor health and financial need highest among them – there are many more reasons to delay claiming. For example, claiming early means a permanent reduction in your monthly benefit amount, while waiting longer means a higher monthly payment for the rest of your life. And if you’re working, claiming early could result in Social Security taking away some of your benefits if you exceed their income limit for those collecting before full retirement age. And don’t forget the negative effect claiming early could have on your surviving spouse, and also that you’ll likely be paying income tax on your Social Security benefits if you have additional sources of income. Deciding when to claim should always be done after evaluating your entire personal situation, but first thing to know is about the downside of claiming your Social Security benefits early. This Motley Fool article by Adam Levy explains.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. Learn more about it here…