Claiming benefits at age 62 is tempting. Don’t.
The earliest age you can sign up for Social Security is 62, and it is also the most popular age to file. But Maurie Backman explains that is likely a mistake for most to do so before full retirement age (FRA), including those with a hefty retirement portfolio. She uses this example: if you’re in line for a benefit of $1,500/mo at an FRA of 67 and you file at age 62 instead, that total shrinks to $1,050/mo. That translates into $12,600/yr of income. Add in $40,000 from retirement savings, and you’re looking at $52,600. Waiting until age 67 boosts annual income by $5,400. Full article here.
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.