Delaying social security benefits does not always mean greater total payment

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Decide when to take Social Security is a large decision "data-reactid =" 12 ">Decide when to take Social Security is a large decision

Although not all retired workers will receive social security benefits, most will have accumulated the 40 lifetime work credits needed to receive a monthly payment. This is a good thing, since 62% of today's retirees rely on their monthly payment to account for at least half of their income.

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However, even taking into account a person's income history, length of work history, and year of birth – three of the top four factors that determine your Social Security benefit audit – this is your age. claim that can play the biggest role in increasing or reducing your income. monthly payment.

The reason? The Social Security Administration encourages retirees to be patient. For each year that an eligible beneficiary is late in receiving a payment, benefits may increase by 8% until age 70. Other things being equal (year of birth, earnings history and work history), age 70 can result in a monthly payment up to 76% higher than that of a claimant as early as possible , at the age of 62.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Therefore, it's no wonder that One of the most In general, depending on your year of birth, waiting until age 70 could generate an increase of 24% to 32% compared to what you would have been paid monthly to your retirement age& nbsp; – that is, the age at which you are considered eligible to receive the entire allowance paid by the Social Security Administration. "data-reactid =" 37 "> It is therefore not surprising that one of the most commonly touted ways to increase Depending on your year of birth, waiting until age 70 could generate an increase of 24% to 32% over what you would have received monthly at retirement age, that is, the age at which you are considered eligible to receive your full payment by the Social Security Administration.

But the potentially surprising fact is that delaying your application does not necessarily mean that you will receive a larger total payment. Let me explain.

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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Delaying your social security claim is not always the solution "data-reactid =" 60 ">Delaying your social security claim is not always the solution

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Although delaying the start of benefits will actually increase the monthly payment of any eligible retired worker, it is not the only variable to take into account. Rather than trying to maximize what you will receive each month from Social Security, recipients should address their claim decision in order to maximize what the program will bring them back. lifetime. Thus, in some cases, it may not be worthwhile to waive monthly allowances of up to eight years, even if reduced, to receive a larger monthly check. "Data-reactid =" 61 "> It will, however, delay the start of benefits.In fact, increasing the monthly payment of any eligible retiree, this is not the only variable to be taken into account.Rather than trying to optimize what you will receive each month from Social Security, beneficiaries should address their decision to claim with the intention of maximizing this program will pay them on their lifetime. Thus, in some cases, it may not be useful to forgo monthly benefits of up to eight years, even reduced, to receive a larger monthly check.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For example, if you have one or more chronic diseases (diabetes, heart disease, cancer, etc.), the average life expectancy in the United States is not nearly 79. The average life expectancy is not a concrete line, but it acts as a If you take reduced benefits at age 62 or increased benefits at age 70, the lifetime benefits you received between ages 78 and 80 will be equal If you live longer than age 80, delaying benefits would have been a better option to maximize the payment of your life, but if you do not reach the end of the 70s, an early deposit should allow you to get the most out of your Social Security., even with a reduced monthly payment so permed. a bit of a crapshoot since none of us (thankfully) knows our expiration date. For example, if you have one or more chronic health conditions (diabetes, heart disease, cancer, etc.), you can not reach an average life expectancy of nearly 79 years in the United States. United States, which is not a concrete line, but is a very vague point of inflection that can help you decide when you will benefit from your benefit at age 62 or increased benefits at At age 70, lifetime benefits between age 78 and age 80 will be equal, so if you're over age 80, deferring benefits will have been a better option in terms of: maximizing your lifetime payment, but if you Do not reach the end of the 70s, an advance deposit should allow you to make the best of social security, even with a monthly payment reduced permanently since none of us (thankfully) knows our expiration date.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Another reason an early claim could have a perfect sense if you have limited earning capacity or no other source of income. Even if the unemployment rate of the elderly is low, there is no guarantee that you will be able to get a good paying job if you are outside the job market. This may leave older workers with limited retirement savings that would allow them to claim their social security benefits sooner. "Data-reactid =" 67 "> Another reason why an early claim is quite logical is if you have a limited earning capacity or any other source of income.Although the unemployment rate of the elderly is low, there is no guarantee that you will be able to get a high-paying job if you are out of the labor force, which could leave older workers with limited retirement savings claiming their social security benefits quickly.

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Source of the image: Getty Images.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Delay social security benefits can also does not make sense for some spouses. In cases where there is a large income gap between two spouses, it is not uncommon for the spouse with the lower income to receive benefits earlier in order to generate income for the household. At the same time, this gives the spouse who earns the most time the time needed for the benefits to increase by up to 8% per year, which is perfect because it will have a greater impact on the household's income. retirement. "Data-reactid =" 89 "> Delaying social security benefits may also not make sense for some spouses, while giving the spouse with the highest incomes the time to earn up to 8% per year. year, which is perfect because it will have a greater impact on the household income in retirement.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The fact is that delaying a security request does not always mean that you make the most of the program throughout your life. Several variablesincluding your health, your marital status and your financial well-being, all must be weighed before making your final decision. "data-reactid =" 90 "> The point being that delaying a social security claim does not always mean getting more Several variables, including your health, marital status and financial well-being, must all be taken into account before to make your final decision.

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