What No One Tells You About Social Security Timing

4 1 minute read

When it comes to deciding when to start receiving your Social Security benefits, there are a few key factors to consider. Many experts recommend waiting until age 70 in order to maximize the size of your benefit check. However, this may not be practical for everyone, and in some cases, it could actually cost you in the long run.

One of the main benefits of delaying your Social Security benefits is that your income will grow by 8% for each year that you defer it. This can result in larger, inflation-adjusted payments that are guaranteed for life. Additionally, delaying your benefits can help you avoid paying taxes on up to 85% of your Social Security income if your overall income exceeds certain thresholds.

On the other hand, waiting until age 70 to start receiving benefits may not always be the best choice. If you pass away before reaching that age, you may not have received any Social Security benefits at all. It’s important to consider your own health and family history when making this decision.

Another factor to consider is spousal benefits. If one spouse earned significantly more than the other, the lower-earning spouse may be eligible to receive up to 50% of their partner’s full retirement benefit. Some couples opt for a “split strategy,” with one spouse claiming benefits early while the other waits until age 70. This decision will depend on your individual financial situation and goals.

Ultimately, the best time to start claiming Social Security benefits is a personal decision that should take into account your health, spousal benefits, and overall financial situation. It’s important to consult with a financial advisor if you’re unsure about the best course of action for your individual circumstances.

So, while waiting until age 70 to start receiving Social Security benefits may be a common recommendation, it’s not always the right choice for everyone. Consider all of the factors mentioned above before making a decision, and remember that personal finance is just that – personal.