Reason # 1 to require social security at the age of 70
Reason # 1 to require social security at the age of 70

Reason # 1 to require social security at the age of 70

When it comes to requiring social security, you have a choice. You are entitled to your full monthly benefit based on your personal salary history at full retirement age or OFF. FRA is either 66, 67 or somewhere in between, depending on the year you were born.

In the meantime, you are allowed to sign up for a reduced benefit from kl age 62. You can also delay your application for social security in addition to OFF. For every year you do this, your benefit will increase by 8% on a permanent basis.

Once you turn 70, you will receive no financial reward for being late Social Security, so you might as well sign up for benefits at that time. Doing so, however, can give you a monthly benefit that is 24% to 32% higher than it would have been if you had signed up FROM.

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Many seniors prefer does not wait until age 70 to apply for benefits. But here is a great reason to postpone your application for as long as possible.

When your savings fail you

Social security will replace about 40% of the average employee’s early retirement. But most seniors need much more income than that to live comfortably – more like 70% to 80% of their previous income.

The average senior today receives about $ 20,000 a year from Social Security. In itself, it is hardly a lot of money. Combined with withdrawals from one pension schemeHowever, $ 20,000 could provide a comfortable retirement income. But if you do not have many savings to pick up, then it makes perfect sense to postpone your application for social security until age 70.

There are many seniors who get the majority of their retirement income from their IRA or 401 (k) plan – not social security. But if you did not manage to collect the nest egg you had hoped for, then increasing your monthly benefits is significantly a good way to make up for it.

In fact, imagine that you are eligible for the average monthly benefit of $ 1,657 for an FRA of $ 67. If you delay your application up to age 70, you will instead lock in a monthly benefit of $ 2,055 per month. That’s almost $ 400 a month extra, or about a $ 4,800 annual income increase. And it can certainly help to make up for the fact that your retirement account is not giving you the income you were hoping for.

Sometimes it pays to wait

Many seniors do not want to wait until they are 70 years old to require social security. And some people do not even get that choice.

If you are forced out of a job at an earlier age due to health issues or layoffs, you may not have the luxury of waiting to apply for benefits. But if you have the opportunity to persevere until your 70th birthday, then it pays to do so if you did not end up saving a lot of money up to retirement. In that situation, a delay in your application could mean the difference between struggling financially as a senior and doing reasonably well. So it is worth being patient to avoid a world of money-related stress.

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