How Much Money You Make Social Security

Seniors become plenty of choices when it comes to claiming Social Security. But certain ages are more popular ones to file at than others. Here are 3 filing ages yous may be contemplating -- and why each has its benefits and drawbacks.

1. Historic period 62

Age 62 is the earliest point at which yous tin can file for Social Security. The upside of going this road? Getting your money sooner. The downside? Locking in a lower monthly benefit for life.

The monthly benefit you're entitled to in retirement is based on your 35 highest-paid years of wages. But y'all don't get that total benefit until yous reach full retirement age, or FRA, which falls between ages 66 and 67, depending on the year you were born.

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If y'all file for Social Security at age 62, you'll reduce your monthly benefit past 25% to 30%, depending on your FRA. And squeamish equally information technology may exist to become your money early, that's a hitting you may not be able to afford to have.

2. Age 65

Historic period 65 is when Medicare eligibility kicks in. Considering seniors unremarkably enroll in Medicare at that point, some opt to sign up for Social Security as well.

If y'all merits your benefits at historic period 65, you'll conspicuously exist looking at a reduction. However, that reduction won't be as severe as the hit yous'll have for filing for benefits at age 62.

Furthermore, in one case you lot get-go collecting Social Security, you can have your Medicare Part B premiums deducted from your benefits directly. That saves yous from having to manually make those monthly payments (though information technology is possible to fix an auto-pay from your depository financial institution account if you're non on Social Security still).

iii. Age 70

Technically, y'all can file for Social Security at any age in one case yous're 62. But 70 is more often than not considered the latest age to sign upward for benefits, because in that location's no fiscal incentive to filibuster your filing across that point.

For each twelvemonth you hold off on claiming Social Security beyond FRA, your benefits abound 8%. File at 70, and you'll be looking at a 24% to 32% boost to that income stream.

Clearly, a higher Social Security do good is a squeamish thing to lock in for life. Just on the flip side, waiting until age 70 to file for Social Security could mean having to work longer when you lot're ready to retire. Plus, you'll run the hazard of potentially passing away at a relatively immature age, leaving you in a situation where y'all don't collect as much lifetime income from Social Security as you would've by filing sooner.

What'due south the correct phone call?

Let'due south be clear -- y'all don't have to file for Social Security at whatever of the ages above. You might cull to sign up for benefits at your precise FRA. Or, you might filibuster your filing a year past that bespeak to requite your benefits a little boost without having to wait too long to claim them.

There are pros and cons to signing upwardly at any given historic period you might land on. The all-time yous tin do, therefore, is run through those advantages and drawbacks and hope they'll pb you to the right choice.

Source: https://www.fool.com/retirement/2022/03/17/which-of-these-3-social-security-filing-ages-is-ri/

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