May 14, 2013
How much bigger does your social security check become if you wait until age 70 before taking it? Why should you care?
How much bigger does your social security check become if you wait until age 70 before taking it? Why should you care?
“If you were born in 1943 or later, your benefits will increase by 8% per year for each year you delay taking benefits beyond your full retirement age, up to age 70.” (http://www.vanguard.com/pdf/ptss.pdf) “The longer you postpone benefits, the larger your monthly payments will be when you begin collecting. Those larger payments could be very welcome when you are in your 80’s, for example.” (https://retirementplans.vanguard.com/VGApp/pe/pubeducation/retirement/Thinkingaboutretirement/income/WhenToTakeSocialSecurity.jsf?SelectedSegment=ThinkingaboutRetirement&Article=Decide+when+to+take+Social+Security)
If you were born in 1943 or later, your benefits will increase by 8% per year for each year you delay taking benefits beyond your full retirement age, up to age 70. The longer you postpone benefits, the larger your monthly payments will be when you begin collecting. Those larger payments could be very welcome when you are in your 80s.
Right again, Katherine! You can increase your monthly payments by 8% per year by simply waiting until 70 to start taking your social security. That translates into a much bigger monthly paycheck by waiting a few extra years. If you live beyond 80, you have made the right decision and believe me, when you are in your 60’s, the odds of you making it beyond 80 have improved dramatically!
Now don’t let this stop you from retiring earlier than 70. That is just the year you start pulling your social security check. You may decide to retire at 60. You can start accessing your other retirement accounts such as your 401K, your Roth IRA, a pension, or maybe some taxable funds. Your saving habits and tight control of your spending habits will dictate plenty when it comes to when you will retire.
Think twice before requesting social security check. There is a great deal of money at stake. YOUR money!