Making a decision on when to begin taking Social Security benefits is one of the most important financial decisions you will make.
You become eligible to take reduced Social Security benefits at age 62, full benefits at age 65, 66 or 67 depending on when you were born, and you can defer taking benefits to age 70.
In looking at when to take benefits it is important that you consider the longevity of your family and your own anticipated life expectancy. Keep in mind, though, that far too many people are taking Social Security benefits at age 62.
People are living longer today and for every year you wait to take benefits you will get 8% more per year for the rest of your life. This really adds up.
While 8% may not sound like a lot, if you can wait to age 70 you will receive close to double the payments you would receive at age 62.
Of course, everyone’s situation is different so there are no hard and fast rules here. There are also different options available if you are married, single, divorced, or have minor age children.
Many fee-only Certified Financial Planner® professionals, including me, can help you determine which option would be best for you and your family. Be sure to get all the facts before making your Social Security benefit decision. It will impact the amount you receive for the rest of your life.