Social Security
Why should you consider waiting on taking your Social Security benefit until age 70?
Why should you consider waiting on taking your Social Security benefit until age 70?
Waiting until age 70 will increase the monthly benefit by over 70% if you would have taken it at 62. Every year you wait after your full retirement age (FRA), it increases by 8% per year AND there is an inflation adjustment to boot. Patience is needed when deciding when to take this benefit, but it is worth it for those who see the big picture.
But you could die early many will say? Yes, that is possible, but if that happens, you have no regrets because you are not around to worry about that (death has no worries). If you live into your 80’s and 90’s (likely for many, especially women), you will be happy to have waited with that much bigger monthly benefit.
All of this applies to a spouse as well. By waiting until age 70, you are locking in the biggest benefit either for you or your spouse if he or she outlives you (they end up taking your benefit if it is bigger than theirs). This is a BIG deal for a couple who has one person with a much bigger benefit than the other. This decision should be made together.
Try to see Social Security for what it is. It is an insurance program to help you or your spouse avoid living in poverty in old age (the retirement benefit is simply one of the many benefits under the program). The decisions you make along the way are HUGE. Read the books, Get What’s Yours and Graduation!, to better understand the situation and your many options. Get informed!