You're entitled to your full monthly Social Security benefit based on your earnings history when you hit your full retirement age (“FRA”) or you can take Social Security at 62.
Your FRA is either 66, 67, or somewhere in between, depending on when you were born. However, you can enroll in Social Security early and take Social Security at 62.
However, for each month you claim benefits ahead of FRA, it reduces the amount for the rest of your life.
Motley Fool’s recent article entitled “3 Reasons to Claim Social Security Benefits Early” says it may pay to enroll early, if one of these situations applies to you.
If you require money immediately, then you might not have the option of weighing whether claiming Social Security early is a good idea. You'll just have to go ahead to get by.
It’s better to claim your benefits early at a lower rate, than adding costly debt to survive.
This formula is designed so you break even, if you live an average lifespan. However, if your health isn't good, and you don't expect to live all that long, then filing for benefits early could be the right move. This could ensure that Social Security ultimately pays you the largest amount of money.
Take the time to consider your options for claiming your benefits. This will help you to avoid regretting your choice. Consult with a financial advisor with expertise and experience in retirement planning.
Reference: Motley Fool (Oct. 6, 2020) “3 Reasons to Claim Social Security Benefits Early”
Suggested Key Terms: Elder Law Attorney, Social Security, Elder Care, Financial Planning
The 15 minute initial phone call is designed as a simple way for you to get to know us, and for our team to learn more about your unique estate planning needs.