Emily Weiss
Deciding when to claim Social Security is one of the most important financial choices you’ll make for retirement. While many people aim to delay benefits until age 70 to maximize their monthly payments, this strategy might not work for everyone. Here are three key reasons why claiming Social Security earlier could actually benefit you.
Your Job Is Affecting Your Well-being
Many people plan to delay Social Security until age 70, but this often assumes you’ll continue working until then. However, if your job is causing stress, fatigue, or even physical pain, waiting might not be worth it. Whether it’s long hours, a difficult boss, or just feeling burnt out, your mental and physical health can take a hit.
If your job is negatively impacting your well-being, claiming Social Security earlier might be a smarter move. Even with slightly reduced benefits, stepping away from a toxic work environment could significantly improve your quality of life.
Considering Your Health
If you’re already nearing your full retirement age (FRA) and finding your job unbearable, it might be worth starting Social Security sooner. Sometimes, prioritizing your health and happiness outweighs the financial benefits of waiting.
A Decline in Health Could Change Your Plans
Life can be unpredictable, and even if you’ve been healthy most of your life, things can change. If you’re facing unexpected health issues, you might not have the luxury of waiting until age 70.
Delaying Social Security generally makes sense if you expect to live a long life, as the increased monthly amount adds up over time. But if your health has declined and you’re unsure about your life expectancy, it could be more practical to claim benefits earlier. This way, you can make the most of your Social Security while you’re still able to enjoy it.
Life Expectancy Considerations
While the idea of larger monthly checks sounds appealing, it’s essential to consider your current health. If your doctor has raised concerns or you’ve been diagnosed with a condition that affects longevity, claiming earlier can help secure financial support when you need it most.
You Have a Solid Retirement Savings Plan
If you’ve built a strong retirement savings cushion, you might not need to wait for maximum Social Security benefits. For instance, if your savings exceed $2 million, you might already be financially secure. In this case, claiming Social Security earlier can provide extra income for travel, hobbies, or simply enjoying your retirement without financial stress.
Balancing Savings and Social Security
Your retirement savings can act as a safety net, allowing you to claim benefits earlier without significant worry. Plus, having both savings and Social Security can give you more flexibility in how you spend your golden years.
Final Thoughts
While waiting until age 70 to claim Social Security can increase your monthly checks, it’s not always the best choice for everyone. If your job is harming your health, your health has taken a downturn, or you’ve saved enough to live comfortably, it might be smarter to claim earlier.
Retirement planning is personal, and what works for one person might not work for another. Take the time to evaluate your situation and consider what will make you happiest and most secure in your retirement years.
FAQ’S
- When should I start Social Security benefits?
- You can start at age 62, but waiting until 70 increases your monthly payment.
- Will working affect my Social Security benefits?
- Yes, if you claim before full retirement age (FRA) and earn above set limits.
- Are Social Security benefits taxable?
- Yes, if your income exceeds certain limits. Up to 85% may be taxed.