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Social Security: Claiming early vs. waiting for higher benefits - PSCA
Claiming Social Security “early” (before full retirement age) is still the most popular option for many American seniors, even though they know waiting longer will substantially improve their monthly benefit. Two recent surveys revealed that nearly half of unretired Americans plan to claim their benefits before reaching their SS full retirement age (age 67 for those born after 1959), and only a meager 10% plan to maximize their Social Security payment by waiting until age 70 to claim.
The reasons for this vary, including a mindset to simply claim SS as soon as it is available, fear that the Social Security program will cease to exist or will cut future benefits, an honest need for the SS money earlier, or (in some cases) actual financial advise to take benefits early. The one reason which is simply untrue is that Social Security will cease to exist or go bankrupt. Although the program will have looming financial issues in coming years, there is little chance the program will go away, or even that SS benefits will be cut. Congress must intercede with program reform soon, but there is little doubt that they will restore the program to financial stability. So, despite the uncertainty reflected in the survey results, the best course of action for deciding when to claim Social Security is to carefully evaluate your personal circumstances and claim when it is truly best for you. See the results of the two separate surveys in this article by Ted Godbout for the Plan Sponsor Counsel of America (PSCA). To quote from the article, “Without a plan for Social Security, a retirement strategy is not complete.” Click here to read more.
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. All questions are answered quickly, at no charge. Learn more about it here…