Claiming Social Security at 62? You might regret it. personal Finance

(Selena Maranjian)

One day, you’ll probably be among the millions of Americans who collect Social Security (65 million, by 2021). How much will you deposit? Well, the answer is different for each of us, depending on how much we earned in our working lives – and also to a large extent when we start collecting our benefits.

We can start collecting as early as age 62, and most people start collecting around age 62 or 63. There are good reasons not to do so, though — as well as some arguments in favor of it. Here’s a closer look at why you might regret claiming at 62 — then a few reasons why it might make sense to you.

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1. You will get small checks

Most of us havefull retirement ageAt which point we can start collecting full benefits depending on our earnings history, and for most of us, it’s 66 or 67. Every year before your full retirement age you collect your benefits Specifically, if you start collecting at 62, you’ll receive about 70% to 75% of your full benefits.

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It’s not ideal, but it’s not as bad as it looks — after all, while the checks may be small, you’ll end up collecting many more of them in total. For those who live an average-long life, there will be little difference in the total benefits received, even if benefits are paid out.

2. Claiming early can spoil a spouse’s smart strategy

However, before deciding when to start collecting your benefits, you should consider the bigger picture. For example, married people can get the most out of Social Security when they each start. While you’ll both enjoy two benefit checks each month, it’s likely that at one point, one of you will leave—and then only one check will arrive. The rules let you collect whatever profit is bigger. So it’s worth trying to make at least one of your mileage checks as large as possible.

A good way to maximize your benefits is to delay collecting them — until age 70. If the elder earner spouse delays till 70, it can greatly help the lower earner, if he or she is the surviving spouse in the future.

3. If You Plan to Keep Working, Your Benefits Could Be Lower

Another consideration is that if you plan to work Over the age of 62 years. If you start collecting Social Security and work even if you earn more than a certain amount, the Social Security Administration (SSA) can reduce your benefits. As it states:

If you are under full retirement age for a full year, we deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2022, this limit is $19,560. Is,

The year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different threshold. In 2022, your income limit will be $51,960. Is, We calculate your earnings for the month before you reach your full retirement age, not your earnings for the entire year.

This may sound terrifying, but once you reach your full retirement age, the SSA will stop withholding benefits and recalculate your benefits that were withheld. So you will get back at least some of the withheld profits. Still, if you plan on working long enough, it may be best not to start collecting those benefits too early.

On the other hand…

In spite of the above reasons, there Huh Some reasons why you might want to start your own collection social security benefits Soon. For example:

  • You don’t know how long you will live. If you wait to collect until age 70 and then die at age 72, you won’t receive much of Social Security benefits. Think a little about your health and how long your relatives lived. If you have a good chance of living a very long life, it may be best to delay for as long as possible.
  • Maybe you can afford to retire early. Many people start collecting profits early because they should. Maybe they lost their job or for whatever reason they need that income as soon as possible. Many of those who may delay collecting their benefits should delay, but if you’ve done a good job of saving and investing for retirement and you can afford to retire early, collect early. can start doing.

The decision of when to start collecting Social Security benefits will be different for most of us. Take some time to learn more and think about it before you do anything, so you can position yourself to get the most out of the program.

The $18,984 Social Security Bonus Most Retirees Completely Overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a few little-known “Social Security secrets” can help ensure an increase in your retirement income. For example: A simple trick could pay you as much as $18,984 every year…! Once you learn how to maximize your Social Security benefits, we think you can retire confidently with peace of mind. To learn more about these strategies just click here,

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