Or should you delay Social Security to get a higher benefit amount?
Here are some things to consider in yourretirement planning.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
If youre a surviving spouse, you’re free to begin receiving benefits at 60.
However, by taking benefits earlier, youll face a lifetime benefit reduction.
Your Social Security benefit is based on your primary insurance amount.
Thats the amount youd receive if you started your benefits atfull retirement age.
If you were born in 1960 or later, your full retirement age is 67.
Any time you take Social Security before your full retirement age, youll have to accept a reduced benefit.
Your benefit will be 6.66% lower for each year of early benefits.
However, if you might hold out past full retirement age, youll earn delayed retirement credits.
These amount to 8% per year until your Social Security benefits cap out at age 70.
However, you may want to start benefits as early as age 62 in the following situations.
Your Social Security payments will be lower, but claiming early may result in higher overall lifetime benefits.
Keep in mind, though, that your life expectancy is difficult to predict.
Even if your health isnt perfect, theres a good chance youll live longer than you predict.
For women, the average life expectancy was 80.2 years.
Outliving your money is a much bigger risk than leaving money on the table.
Social Security income can be a lifeline in these situations.
If delaying Social Security retirement checks would push you into debt, claiming early is a wise decision.
Need Some Quick Cash?
If youre looking to boost your income this month, weve got just the thing for you.
Once you reach your full retirement age, you dont have to worry about a reduced benefit.
But youre not permanently giving up that money.
For 2024, the Social Security COLA was 3.2%.
In 2025, itll be 2.5%.
If you expect to live into your 80s or 90s, waiting is often the best move.
Every year you wait past 62, your checks will increase by 6.66% until full retirement age.
After that, theyll increase by 8% until you hit the maximum benefit at age 70. you should probably consider how your decision affects your spouse.
The widowed spouse can receive up to 100% of the deceased spouses benefits.
By not taking early retirement, youll be able to get a bigger benefit, of course.
Can You Undo Your Decision to Claim Social Security?
You have two opportunities to reverse your decision to take Social Security retirement benefits.
Can You Survive 10 Days of Budgeting?
If you oughta wrangle your budget, it may be time to consider a savings challenge.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
