When to Retire: Claiming Social Security Benefits Early

 The full retirement age for most people is at 66 to some and getting a delayed retirement credit is max out at 70. Many people are wondering if it is possible to get maximum retirement benefits earlier.

According to Social Security’s policy, you can retirement benefits as early as 62. However, the figure you’ll get is 30 percent lower if you retired at 66 which comes in with full retirement benefits. Others can hold their retirement at the age of 70 for getting more than your full retirement benefits can offer.

High-Wage Earners

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Financial Engines’ chief Investment officer, Christopher Jones, recommended that high-earners and married couples should wait a little bit longer before making their claims. He further explained the reasoning behind this.

Firstly, Social Security payments are actually based on mortality tables. He further explained that the last time the mortality table has not been updated since 1983. Moving forward to the present time, thanks to modern advancement in medicine, life expectancies increased significantly over the years.

Another reason is the low-interest rate environment still being implemented. Social Security benefits can be delayed resulting in 6 to 7 percent increase that secures high return of investments.

Low Income Earners


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On the other hand, Jones mentioned that low-income earners don’t necessarily need to wait until their reach 70. Generally, they can enjoy full retirement benefits if they choose to retire at 66 or 67.

To avail the highest retirement benefits as possible, low-income earners can hold until 70. Another option for them is early withdrawal.



Early Retirement



Retiring earlier than the 66 means you’ll get lesser retirement benefits on paper. However, there are a few factors we need to consider when retiring.

Jones also stated that benefits you’ll get from retiring earlier may outweigh the cons. You may be cutting a portion of your retirement benefit buy you’ll gain a lot in other aspects.

If you are healthier compared to other people and still efficiently handling your workloads, by all means, you can hold your retirement and push for 70. In contrast, if you are feeling a bit frail lately and might be suffering from any health condition, it might be best to consider claiming your retirement benefits sooner.


Life After Retirement


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The first basis of retirement should be your health and your income. Either you hold your retirement at the age of 70 or you choose to hang your gloves early, you should always look after your health and what comes after retiring.

Having a healthy lifestyle works at every stage of life and this is very essential after retiring. After all, you need to enjoy all of your hard-earned benefits. Working with your hobbies also do the trick. This will keep you engage within your community and keep you busy.

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With a help from a financial advisor, you can get a rough insight on when is the best time to file a claim free from making a huge mistake. Remember, you can only withdraw your application once so have a good assessment of yourself before deciding to retire.

Cover Photo Credits:Consumer reports