Choosing when to apply for Social Security benefits can be difficult if you are unsure of what timeline works best for your needs.
You can either choose to take advantage of your retirement benefits as early as possible or to wait in order to maximize your payouts. There are advantages to each option, and researching the possibilities will allow you to make the most sensible choice for your retirement.
While you can opt for receiving your Social Security benefits early on, you will be paid less per month than if you chose to receive them later. This article will discuss the benefits of choosing each option to help you decide what the right choice is for you.
If you are between the ages of 62 and 70, you can begin to collect the Social Security payments you have been working toward for years. Whether you want to travel the world or buy a new home, your Social Security benefits can help provide you with a comfortable life after you have stopped working. Read on to learn more about Social Security basics and the considerations you should take when setting up your payment timeline.
If you plan to work after receiving Social Security benefits, opting to receive the benefits early may be in your best interest. Eligible recipients can begin to receive Social Security at 62 years old. By choosing to apply for Social Security benefits before you have reached the full retirement age of 66, you can afford yourself the opportunity of scaling back hours at your current job position.
The amount you receive per month from Social Security can alleviate some of the financial burden you may be under and will assist in paying your bills until you reach full retirement age in a few years. Additionally, if you choose to receive your Social Security benefits early as you continue to work, you will receive a reevaluation of your benefits once you have reached full retirement age at 66. While the amount you receive per month will be reduced until this point, you will ultimately see a higher payment being made in a few years’ time.
During the recalculation process, the Social Security Administration (SSA) will credit you for the months you did not receive full benefits due to your continued employment. You can choose to leave your job position after you have turned 66, as the increase in Social Security benefits will allow you to live comfortably into your retirement years.
If you are married, the partner with the lowest earnings may choose to receive Social Security benefits early, whereas the higher-earning partner should defer his or her benefits until later in life. In doing this, you will be able to jointly share the benefits of Social Security during the timeframe you prefer. Staggering the Social Security benefits will also allow the surviving spouse to receive the maximum amount of benefits if the other spouse passes away.
It may seem preferable to receive your Social Security benefits early as you can take time away from work to enjoy a slower pace of life. However, choosing to wait until you have reached the full retirement age before receiving your Social Security benefits can be an advantageous decision. You will receive more per month by opting to wait until later in life to begin receiving your Social Security. Additionally, the amount you collect over the years will accumulate quicker if you defer your benefits than it would if you chose to receive your benefits at 62 years of age instead.
If you are in good health and anticipate living a long life, there are more advantages to receiving your Social Security benefits late than there are in receiving them early. The longer you wait to apply for your benefits, the more you will ultimately make once you choose to contact the Social Security Administration (SSA).
On average, individuals who choose to apply for Social Security benefits at 62 years of age will make approximately $750 per month. If you choose to apply at 66 years old, you will receive around $1,000 per month. If you decide to forgo receiving your benefits until you are 70 years old, you will collect roughly $1,300 per month in Social Security benefits.
There are several factors to consider when choosing what timeline is best for you to begin receiving your Social Security benefits. The primary factor that may influence your decision is how much money you have accumulated in your savings account by the time that you qualify for Social Security benefits. If you do not wish to keep working but would like to receive your Social Security benefits at 62 years of age, you will need to have enough money in your savings account to sustain your lifestyle until you have reached full retirement age. If you have an expensive lifestyle, this may be something to consider before you submit your application early.
Your marriage status will also influence when you decide to apply for your Social Security benefits. The cost of living for a single person is lower than the cost of living for a married couple, and this should be taken into consideration when choosing the best option for you. If you are single and choose to receive your benefits once you reach 62 years of age, you can live comfortably off your payments each month as you will not be spending out much to retain your current lifestyle. Married couples might find it advantageous to wait until each partner has reached full retirement age before receiving benefits to ensure they are receiving the maximum benefit amount.
If you are married, you can also choose to have the higher-earning partner collect his or her Social Security benefits early and allow the lower-earning partner to receive spousal benefits during this time. The lower-earning spouse can choose to file for his or her own Social Security benefits once he or she has reached full retirement age. This will allow you to live comfortably on one set of benefits until the other set has reached a higher payout amount.