As the largest and final cohort of the baby boomer generation approaches retirement, the decision of when to claim Social Security benefits becomes increasingly important. At Extreme Investor Network, we want to help you make informed financial decisions that will set you up for a secure future.
According to new research from the Alliance for Lifetime Income, over half of the 30.4 million Americans who will turn 65 by 2030 will primarily rely on Social Security for income. However, deciding when to claim these benefits can have a significant impact on your financial well-being in retirement.
One key factor to consider is your full retirement age, which is when you are eligible to receive 100% of the benefits you’ve earned. Currently, the full retirement age is between 66 and 67 for most people, depending on their birth year. Claiming benefits before your full retirement age can result in a reduction in monthly checks, while delaying benefits until age 70 can lead to an 8% benefit boost for each year past full retirement age.
It’s important to note that claiming benefits early, such as at age 62, can result in a significant reduction in lifetime benefits. For example, someone turning 65 this year would see a 30% benefit cut if they claimed at age 62 instead of waiting until their full retirement age. Despite this, many individuals still opt to claim benefits early.
At Extreme Investor Network, we want to empower you to make smart financial decisions that will maximize your lifetime benefits and financial security in retirement. By understanding your full retirement age and considering factors such as longevity protection, immediate needs, and spousal benefits, you can make an informed decision about when to claim Social Security benefits.
Remember, even delaying benefits for a few months can increase your lifetime benefit income. Whether you can wait until age 70 or need to bridge to a higher benefit amount, our goal is to help you navigate the complexities of personal finance and set yourself up for a successful retirement. Stay tuned for more tips and insights on how to optimize your financial future at Extreme Investor Network.
