Requiring social security at the age of 70 will help you manage these 3 retirement expenses
Requiring social security at the age of 70 will help you manage these 3 retirement expenses

Requiring social security at the age of 70 will help you manage these 3 retirement expenses

The decision to sign up for social security is not one to be taken lightly. This is because your application age will dictate how much money you end up collecting each month.

If you claim social security with your full retirement age, or OFF, you get the exact monthly benefit that your earnings history entitles you to. Applying for benefits before FRA will result in a reduction, while delaying them beyond FRA will result in a boost – and a potentially generous one.

In fact, if you persist in claiming Social Security until 70 years, which is when delayed pension credits stop accumulating, you will increase your benefits by 24% to 32%, depending on your FRA. And that increase will remain in effect for the rest of your life. This, in turn, could make it easier to cover these expensive pension expenses.

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1. Housing

Many retire with their mortgages already repaid. Despite this, a large number of seniors are struggling to keep up with the cost of home ownership. This is because expenses like property taxes, insurance and maintenance never go away.

Furthermore, as homes get older, they tend to require more repairs. They can be expensive – especially if you can no longer easily make them yourself. A higher monthly social security benefit can make your housing expenses less burdensome. And a more robust benefit could also mean the difference between being able to stay in your home and having to cut.

2. Owning a car

If you live in an area without public transportation, you may need your own car as a retiree. But you may have to pay a lot for it.

AAA estimates that the average price to own a vehicle is $ 805.50 per month. If you are worried that a car will burden your nest egg enormously, it may really help in this regard to delay your application for social security in order to receive a higher benefit.

3. Healthcare

It is estimated that the average 65-year-old opposite sex today will use a giant $ 300,000 on health care throughout retirement, according to Fidelity. When you read between the lines, your bills can end up getting even higher if you start retirement with known health issues or start having problems as you get older.

If you do not have money earmarked for medical expenses in one health savings account, it may really pay to consider postponing your social security claim. A higher monthly benefit can make your health bills easier to manage.

An income boost can be a lifeline

Many seniors retire and expect to spend much less on living expenses than they did while working, only to realize that their bills are pretty much the same. If you have the opportunity to postpone your application for social security until you turn 70, it may pay to be stuck and wait to sign up. Having a guaranteed higher monthly benefit can save you a world of financial stress as a senior – and also allow you to enjoy the freedom that retirement has to offer.

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