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If you are not already contributing to social security, your FRA will be between 66 and 67. But you do not have to follow the government's retirement age guidelines. You can apply to start receiving your benefits from age 62 or up to age 70. The disadvantage of doing it sooner is lower monthly checks. The advantage of delaying: the bigger ones.
So when should you apply for social security? Well, the age at which the greatest number of people starts to collect is 62 years old. Despite these reduced benefit checks, it is still a wise decision. Here are three reasons why you might want to apply at age 62.
Two big birthday candles are lit – one if the number six and the other a 2, ie 62.
Source of the image: Getty Images.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Reason # 1: It may not be worthwhile to delay"data-reactid =" 26 ">Reason # 1: It may not be worthwhile to delay
The table below shows how much your monthly retirement check will be thinner or bigger than the total amount of your benefits, depending on when you collect them.
|
If you start collecting SSI at age … |
… You will receive this% of your SSI benefit if your FRA is 66 |
… You will receive this% of your SSI benefit if your FRA is 67 |
|---|---|---|
|
62 |
75% |
70% |
|
63 |
80% |
75% |
|
64 |
86.7% |
80% |
|
65 |
93.3% |
86.7% |
|
66 |
100% |
93.3% |
|
67 |
108% |
100% |
|
68 |
116% |
108% |
|
69 |
124% |
116% |
|
70 |
132% |
124% |
Source: Social Security Administration.
These numbers might make you think that it is obvious that you should wait as long as possible, but that is not necessarily true. Delayed can give you bigger checks – but you'll get less.
As the Social Security Administration explains: "If you reach the average life expectancy of a person of your age, you will receive roughly the same amount in lifetime benefits whether or not you choose to start receiving benefits at age 62, at retirement age 70 or any age between the two. "
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It can be reasonable to delay some scenarios, for example if you can afford to wait and if your medical and family history gives you reason to believe that you have a good chance of living longer than average. In addition, if your spouse's pension benefits are much less than yours, you can try to make as large a check as possible, so that he can recover your most solid benefits if you die first. "Data-reactid =" 33 "> He can be reasonable to delay some scenarios, for example if you can afford to wait and if your medical and family history gives you reason to believe that you have a good chance of living longer than average. In addition, if your spouse's pension benefits are going to be much smaller than yours, you can aim to ensure that your checks are as large as possible, so that he can collect your most important benefits if you die first.
But for many people, delaying is not really worth it.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Reason # 2: You can not wait"data-reactid =" 35 ">Reason # 2: You can not wait
Another great reason to start collecting your benefits at age 62 is simply because you need this money. Your retirement may start earlier than expected. According to the Transamerica Retirees Survey of 2018, 56% of those surveyed said they had retired earlier than expected, with 24% reporting a loss of employment, and 47% referring to health or family. related causes.
Without a regular salary, deferring your social security will mean that you will mainly live off your own savings, investments, pensions and any other source of passive income you may have. But millions of Americans have not spared enough, as shown by the following 2018 survey results:
|
Amount saved for retirement |
% of workers aged 55 and over |
|---|---|
|
Less than $ 1,000 |
19% |
|
$ 1,000 to $ 9,999 |
6% |
|
$ 10,000 to $ 24,999 |
3% |
|
$ 25,000 to $ 49,999 |
7% |
|
$ 50,000 to $ 99,999 |
8% |
|
$ 100,000 to $ 249,999 |
19% |
|
$ 250,000 or more |
38% |
Source: 2018 Survey on Confidence in Retirement.
Even if you are among the best prepared seniors, spending money for your checks so that you can do more important checks may not be the most careful plan.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Reason # 3: Enjoy retirement more"data-reactid =" 42 ">Reason # 3: Enjoy retirement more
This is not because your finances allow you to delay the day you start collecting the social security you want. Indeed, the earlier you retire, the more you can enjoy. You will be younger, probably healthier and more able to participate in all the activities that will make you happy, whether it's traveling, hiking, playing tennis or golf, gardening or simply playing with your grandchildren. And after all, some of us will not live as long as we wish.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "These are just a few reasons to start collecting your Before you start doing projects based on the idea of starting pick them up late, take a little time to review your reasoning – and remember that it's possible to find some other ways to increase your social security data-reactid = "44"> These are just a few reasons to start collecting your social security benefits sooner. Before you start doing projects based on the idea that you will start to collect them late. , take a little time to review your reasoning – and remember that it is possible to find some other ways to increase your Social Security benefits at least a little too.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 45 "> More from The Motley Fool
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