Is 70 the best age to claim Social Security?: Many experts suggest waiting until age 70 to claim Social Security benefits. This often results in more lifetime income for retirees. However, there are situations where claiming earlier makes more financial sense. Let’s explore when you should consider claiming before 70.
Claiming Spousal Benefits: Earlier is Better
If you’re eligible for spousal benefits based on your partner’s work record, don’t wait until 70. The best time to start these benefits is usually at your full retirement age (FRA). At FRA, you can receive the maximum spousal benefit, which is 50% of your higher-earning spouse’s primary insurance amount.
There’s no advantage to waiting beyond FRA for spousal benefits. You can’t earn extra credits by delaying, so the most you’ll ever get is still 50% of your spouse’s standard benefit. However, claiming before FRA reduces your benefits, so it’s often wise to wait until then.
Poor Health with No Spouse: Consider Early Claims
If you’re in poor health and single, claiming at 70 might not be the best choice. When you delay benefits, your monthly checks increase, but you miss out on payments you could have received earlier. It takes time for the higher benefits to make up for the missed income – often more than a decade.
If you don’t expect to live that long due to health issues, you might end up with less overall by waiting. In fact, if you pass away before 70, you could miss out on benefits entirely. However, if you’re married and the higher earner, delaying can still make sense to maximize your spouse’s survivor benefits.
Protecting Your Savings: When to Claim Earlier
If you’re not working and relying on savings while waiting to claim at 70, be careful not to deplete your nest egg. You need to maintain a safe withdrawal rate to make your savings last, as you’ll need this money to supplement your benefits throughout retirement.
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If you find yourself needing Social Security to avoid spending down your assets too quickly, it’s often better to claim earlier. This can help preserve your savings for the long term.
Making the Right Choice for You
While studies show that waiting until 70 is often the best choice, it’s not a one-size-fits-all solution. Your personal circumstances play a crucial role in determining the best time to claim Social Security benefits. Consider factors like your health, marital status, and financial situation when making this important decision.
Remember, the goal is to maximize your lifetime income and ensure financial stability throughout your retirement years. Sometimes, this means claiming earlier than the generally recommended age of 70. By carefully evaluating your unique situation, you can make the choice that best supports your long-term financial well-being.
In conclusion, while delaying Social Security until 70 works well for many retirees, it’s not always the optimal strategy. Be sure to consider your individual circumstances and seek professional advice if needed to make the best decision for your retirement future.
