You’re coming to the point where you feel like you can finally retire and escape the daily grind and get some well-deserved rest. But is there a best time to start claiming Social Security benefits? Well not all ages are equal in this regard.
For a lot of your time working to earn an income you are also making payments to the Social Security Administration for payouts later in life. They are a reward for a life of hard work and help people live a little more comfortably in their later years; however, this fund isn’t usually enough to get a luxurious retirement. That’s where retirement plans like 401(k) come in.
Social Security is a set of government benefits that help workers with at least 10 years of labor. The earlier possible retirement is at 62 years old; however, this may not be the best time to start collecting. Retirement at the earliest possible time will mean you will receive lower monthly payments.
Instead, it may be best to wait a few more years before you want to retire because you’ll get a bigger monthly payout. The SSA considers full retirement to be at the age of 66 or 67, depending on your birth year. You may even want to wait a few more years after that because you can claim the best retirement benefits at the age of 70. When you decide to retire also might depend on if you want to earn an income during that time. For example, if you want to retire at the age of 62, but you also want to keep your day job, the government will deny you some of the retirement benefits because you have extra income. So consider holding off on retirement if you want to keep your job or income.
But there are also some possible benefits to taking retirement early as well. If you feel that you do not earn enough from your job, you can take early retirement to supplement your income. This means you can continue working and draw benefits from Social Security to help spend on essential needs. Even better, if you feel that you do not require the benefits and end up with extra money, you can also use that money to put into investments to increase its value. You may win out in the end if you are smart with your investments and get far more from your benefits than you would get in the future straight from the SSA.
Whatever your choice may be, the maximum age at which Social Security stops giving you additional benefits is 70. After 70, there are no additional benefits for waiting to get your Social Security benefits, so there is no reason to wait any longer after that. It’s important to also check what benefits you will be receiving from the SSA as everyone pays into their benefits different amounts depending on their income. If you wish to check what your benefits are, you can always check the social security online calculator. Knowing what you will receive in benefits will help you plan out your retirement in the future.
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