What no one tells you about public safety time
Every year that you wait to receive your social security payments will increase the size of your benefit check, so it makes sense that you would want to wait until age 70 to maximize your benefit.
But while the general advice is to hold on until age 70 if you can, doing so doesn’t apply to all retirees. And in some cases, doing so can cost you.
What is the benefit of delaying public safety?
First, it is important to understand how you expect to receive your social security benefits. Your Social Security benefits increase by 8% for each year you earn. It’s a low-risk, inflation-adjusted risk that gives you guaranteed payouts.
And you’ll have to pay taxes on up to 85% of your social security benefits if your earnings exceed certain limits. If you’re still working when you claim benefits, your paychecks may put you over that threshold.
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Why delaying public safety can cost you
You can start receiving social security benefits when you turn 62. While waiting until age 70 means bigger paychecks, that’s the only time you live long enough to reap those benefits. If you passed away at age 69, for example, you wouldn’t get Social Security. Even if you live in your early years, you would miss out on some money.
Of course, we don’t know what will happen in the future. But it’s important to consider the potential costs of holding — and any bad health history in your family — when deciding whether or not to apply for Social Security.
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Think About Your Marriage Benefits
Joint benefits will come into play if one spouse earns more than the other. The spouse who earned less can receive up to 50% of the total retirement pension if that figure is higher than them.
Some couples have decided that the low-earning partner should claim benefits as soon as possible to ensure additional income, while the other partner waits until they receive income such as income, other living things, other living things, other living things, other living things, other living things, and other things. This “Sprip Sprip” can make sense for some couples, even if both spouses are waiting for COUSE to mean big checks later in life.
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Find out what is right for you
Heeding popular advice — like waiting until age 70 to get Social Security — doesn’t always make sense. Personal finance is, as the name suggests, personal.
The best time to claim Social Security depends on your financial situation, and you shouldn’t assume that hitting age 62 or age 70 is where you should start. Consider things like your health, health benefits and taxes to determine when you will start receiving your paychecks. If you’re not sure, consider talking to a financial advisor.
