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The Right Timing for Claiming Your Social Security Will Impact Your Retirement Finances - MSN.com
Determining when to start your Social Security benefits is crucial, especially if they will finance a large part of your retirement. If you were born in 1960 or later, your full retirement age (FRA) is 67. At that age, you qualify for 100% of your Social Security benefit. Assess carefully if this is the optimal time to claim.
Delay your benefits until age 70, and secure an additional 24% increase, since your benefit earns 8% per year in delayed retirement credits (DRCs). Your Social Security benefit will grow 76% between the ages of 62 and 70. Evaluate your break-even point if you are trying to maximize your Social Security benefit. The break-even point for taking your benefits at your FRA versus at age 62 is about 78 years and 8 months. If you delay until age 70, it is about 82 years and 6 months old. It generally takes 3 to 5 years after you start receiving benefits to recover what you paid into Social Security.
Andrea Arlett Nabor Herrera’s article outlines what you should consider when deciding whether to start Social Security benefits at your FRA or at age 70. This decision is even more important if you will rely heavily on Social Security. If you delay until 70, your higher benefit will help offset rising Medicare Part B costs, and your cost-of-living adjustment (COLA) will be larger. Life expectancy matters; if you have a family history of living to 85 or beyond, delaying may be the right option. For more detailed suggestions to help you make your decision, read her entire article here…
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.