3 reasons not to delay social security
3 reasons not to delay social security

3 reasons not to delay social security

The great thing about social security is that actions on your part can result in a higher monthly benefit. You are entitled to a full benefit calculated on the basis of your earnings at full retirement age, or FROM. This is what that age looks like, depending on your year of birth:

Year of birth

Full retirement age




66 and 2 months


66 and 4 months


66 and 6 months


66 and 8 months


66 and 10 months

1960 or later


Data source: Social Security Administration.

For every year you endure demanding Social Securityyour benefit will grow by 8% until you turn 70 years old. This means that by delaying your application, you can get a monthly payday that is 24% to 32% higher, depending on your FRA.

Clearly, there is a lot to be gained by going this route. And if you retire with a savings balance that is lower than you would like, it may make good sense to defer your application.

But there are also certain scenarios where social security is delayed do not do makes sense. If these apply to you, you can claim your benefits from FRA – or even before.

Image Source: Getty Images.

1. You have lost your job and can not pay your bills

The problem with a layoff late in life is that it can be difficult to get hired elsewhere when employers perceive you as being about to retire. To be clear, it is illegal not to hire anyone based on age. But it’s also hard to prove that an employer passed you by because of your age.

As such, if you end up losing your job in your 60s, you may need to apply for Social Security to cover your bills. Doing so may mean you lose a chance to increase your benefits – but it’s better than growing a credit card balance and passing it on.

2. Your job harms your health

There may come a time when you are able to continue working, but it is not good for you to do so. If you, come FROM, feel that your job is inflicting unnecessary stress on you or straining your body too much, then it may be time to stop before unhealthy consequences follow. And if you do not delay your benefits, make it possible, then so be it.

3. You have saved up for retirement so well that you can afford a reduced benefit

If you retire with a nest egg of $ 60,000, then you probably need as much money from Social Security as you can get. In that case, it may pay to force yourself to delay your submission.

But if you retire with a few million dollars in savings, so it may not make sense to pressure yourself to wait to sign up for benefits. If the requirement for social security at FRA makes it possible to retire a little earlier or enjoy your life more when you are a little younger, then go for it – because you deserve it.

It is nice that social security is giving employers the opportunity to increase their benefits. But that does not mean that it is the best move for you. In some cases, it’s a smarter move to report earlier – even if it means you lose the higher monthly paycheck.

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