Why do people claim their Social Security benefits when they do? A study in the Journal of Financial Planning offers new insights for our moneyman to share, here is Certified Financial Planner Paul Fain joining us now.
LET’S REVIEW WHEN YOU CAN ACTUALLY START YOUR SOCIAL SECURITY BENEFIT…
Widow: Age 60
Early: Age 62
Full: Age 65-67 (based on the date of birth)
Delayed: Age 70
WHY WOULD YOU START YOUR BENEFIT EARLY OR DELAY?
- Start early: no faith in the Social Security system, poor health, family history of longevity, need money
- Delay: great health, don’t need funds, 8% increase per year to age 70
WHAT DO MOST PEOPLE ELECT TO DO?
- Start at Full Retirement Age: “seemed natural” – most stop working at the same age.
- Highest satisfaction in a study (90%)
- No penalty even if still working
AND FINALLY, WHERE CAN WE LEARN MORE?
- Set up a login: Use benefit calculators
- Contact the local Social Security office. Make an appointment to review options.