Before You Claim Social Security, Make This Key Move | Smart Switch: Personal Finance

(Maurie Backman)

One of the nicest things about Social Security is that you can choose when to file your return. You are entitled to your full monthly benefit, which is based on your earnings history, once you reach full retirement age or FRA. That age is 66, 67, or something in between, depending on the year you were born.

but you can register Social Security long before that. If you are willing to accept a reduced benefit, you can apply as early as 62 years. And if you’re looking to increase your profit, you can delay your filing past FR. For each year you do so, up to age 70, your benefit grows 8%.

You may end up looking at a few different ages to apply for Social Security as you get closer to retirement. But before you make your presentation official, you need to do one important thing.

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Find out what lifestyle your savings can buy you

Ideally, you don’t just rely on Social Security to fund your retirement. Rather, you’ll walk in with a decent-sized nest egg.

But retirement savings balances can be misleading. Yours may seem like a large number at first glance. But when he breaks it down further, he may not be in line for as much annual income as expected.

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