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The “Best Age” to claim Social Security - MorningStar
Spoiler alert: There is no “one best age” to claim your Social Security benefits!
Fact is, everyone’s personal circumstances are unique, so what is best for me won’t be the best for you also. Multiple surveys have analyzed when people actually claim their SS benefits, but when others claim Social Security is often exactly the wrong time for you!
The most popular age to claim is age 62, which is coincidentally the minimum age at which anyone can claim Social Security retirement benefits. But the decision to claim at 62 is most often founded in the simple fact that “it’s there, so why not take it.” And, more often than not, age 62 is exactly the wrong time to claim. For one thing, benefits taken at age 62 are usually only 70% of that available, and that extra 30% will likely be important as you age. For another thing, if you are still working you will be subject to the Annual Earnings Test, which limits how much you can earn while collecting early SS benefits before SS takes away some of your money.
This MorningStar article by Alessandra Malito explains when many people claim Social Security benefits, but also suggests that just because you are eligible doesn’t mean you should claim. Here at the AMAC Foundation’s Social Security Advisory Service, we counsel that deciding when to claim Social Security should be a well thought out decision which takes several fundamental things into consideration:
a) how urgently you need the money
b) your work status
c) your marital status
d) and, especially, your health and life expectancy.
If you have reason to believe that you will live to at least “average” longevity (mid-80s), and your don’t urgently need the money, then delaying your application for Social Security benefits should be considered.
Click here to read the MorningStar article.
Social Security is a complex topic. If you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security or enrollment in Medicare, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of these programs. All questions are answered quickly, at no charge. Learn more about it here…