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Home / Business / 3 Good Reasons to Take Social Security Schemes at 62 – The Motley Fool

3 Good Reasons to Take Social Security Schemes at 62 – The Motley Fool



If you are a US worker who qualifies for social security benefits, the year of birth will determine what the program considers your "full retirement age" (FRA) – the point you can apply for retirement benefits and start collecting monthly checks at the full level earned by you. basis of the lifetime of payroll tax.

If you do not already collect social security, FRA will be between 66 and 67. But you are not obliged to follow the government's retirement age guideline. You can apply to start collecting your benefits as early as 62, or as late as 70 years. The downside to doing so early: less monthly checks. The upside of the delay: larger.

So when are you going to apply for social security schemes? Well, the age at which most people start collecting is 62, and despite the reduced benefit controls, it's still a smart move for many people. Here are three reasons why you may want to apply for 62 yourself.

  Two large birthday candles appear, lit - one if the number six and the other a 2, which makes 62.

Image source: Getty Images.

Reason No. 1: It Can't Be Worth It to Delay

The table below shows just how much slimmer or fatter your monthly retirement check will be compared to your full benefits, depending on when you start collecting them. 19659008] If you start collecting SSI at age …

… You will receive this% of your full SSI benefit if your FRA is 66

… You will receive this% of your full SSI Advantage if your FRA is 67 [75] [%] 75% [70%] [%] 80% 80%

64%

86.7%

80

80

% [%] 93.3% 86.7% 100% [93.3%] [%] 108%

100% [68%

124%

124%

124%

124%

[%]

Source: Social Security Administration.

These numbers may make you believe that it is a no-brainer that you should postpone as long as possible, but it is not necessarily true. Delay can give you bigger controls – but you get fewer of them.

As the Social Security Administration has explained: "If you live on average life expectancy for some of your age, you will receive approximately the same amount of lifetime benefits regardless of whether you choose to begin receiving benefits at 62, full retirement age, age 70 or age between. "

may be reasonable to delay in some scenarios, for example, if you can afford to wait, and if your health and family history gives you reason to believe that you have a good chance to live longer than average. Also, if your spouse's pension benefits are going to be far less than yours, you can aim to make your checks as large as possible so that he or she can collect your more robust benefits if you pass by first.

But for many people, delay is not really worth it.

Reason # 2: You Can't Wait

Another good reason to start collecting your benefits at 62 is because you just need the money. Your pension may begin earlier than you had planned. According to the 2018 Transamerica Retirement Survey of Retirees, 56% of respondents said they had retired faster than they expected, with 24% of those quoting a job loss as the reason, and 47% pointing to health or family-related causes.

Without a steady paycheck, postponement of social security means that you mainly live on your own savings, investments, pensions and any other passive income sources you may have. But millions of Americans have not saved enough, as the following survey results from 2018 reflect:

Amounts saved for retirement

% of workers aged 55 +

Less than $ 1000

19%

$ 1,000 to $ 19009049] $ 100,000 to $ 249,999

19% purchase kr. 19%

19%

$ 250,000 or more

38%

Source: 2018 Retirement Confidence Survey.

Even though you are among the better-prepared seniors, you can use your own assets so you can endure greater social security benefits. It may not be the most cautious plan.

Reason No. 3: Enjoying Retirement More

Just because your economy allows you to delay the day you start collecting social security does not mean you want to. That's because the sooner you retire, the more you will enjoy it. You get younger, probably healthier, and more able to engage in whatever activities make you happy – whether you travel, hike with tennis or golf, gardening, or just play with your grandchildren. And after all, some of us will not live as long as we expect.

There are only a few reasons to start collecting your social security early. So before you start making plans based on the idea that you should start collecting them late, take some time to consider your reasons – and remember that there are other ways to increase your social security benefits, at least, too. .


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