A common question for most Americans today is, “What’s the best age to start receiving Social Security retirement benefits?”
Have you decided when you’ll start taking your Social Security benefits? Well, the age of 62 and 70 would be the answer for many. But, the right age for taking these benefits depends on several factors.
Taking Social Security benefits before retirement will indeed cause a decrease in the amount you get each month, and taking the benefits after the age of 70 won’t. However, the circumstances may differ, depending on several factors.
So, let’s discuss these factors to help you determine the right age for you to start taking Social Security.
Factors to Consider for Taking Social Security
1. Your health
Indeed, we cannot determine our exact life span or how many years ahead of retirement we have left in this world. But, we can get an estimate through our health and our family’s health history.
The case with Social Security benefits is that you stop receiving the monthly benefits after your death although your spouse’s benefit may be increased at that time.
So, what would be the point of waiting to take benefits until the age of 70 and then dying shortly after?
If you are suffering from a disease or have significant health issues after 60, which can risk your life, taking the benefits earlier is usually the best choice.
Although your Social Security benefits will be reduced, and you might receive only 70% of the total benefits, it is still better than receiving none.
On the other hand, people with good health and no severe diseases usually wait until their full retirement age to get the most benefits. But, such people should have a rough expectation to live past 76 years of age or 14 years after the year they start taking their benefits. Otherwise, you won’t be enjoying all the Social Security benefits.
If you live longer, the longer you wait to start the benefits, the more benefits you will collect. So, people who expect to live for a few decades after their retirement can wait to avoid reducing their benefits compared to taking them early.
2. Your marital status
Your marital status plays a significant role in your Social Security benefits, and you can also receive some amount of money from your spouse’s benefits.
As a good rule of thumb, married people in good health, with a spouse should wait until their full retirement age to take their Social Security benefits. Then, if one dies, the other will keep receiving a higher benefit.
In other words, your living spouse will get 50% of your Social Security benefits even after your death. So, if you wait until your full retirement age, you could leave more benefits for your family after you die.
This advantage encourages people wait to receive their Social Security because they want a better future with no financial issues for their family even after they’re no longer in this world.
Also, if you have divorced your spouse, and your marriage lasted for ten years, you can still receive your benefits or 50% of the total amount your ex-spouse is receiving, whichever is higher.
The Social Security benefits can also apply if both husband and wife are earning. In that case, the higher earner’s benefits could be considered, and both will receive their amount according to it whichever is higher, theirs or 50% of their spouses.
3. Your children
Social Security benefits are also applicable to young children in the case of a deceased parent.
For example, if you are eligible for Social Security benefits and die, your young children will receive a portion of your benefits until they reach the age of 18. The children need to be unmarried.
Children who became disabled before the age of 22 are also eligible for receiving their parent’s Social Security benefits.
Also, if your children are dependent on you, they can get half of your retirement or disability benefits without decreasing yours. After your death, your children will get almost 75% of the Social Security benefits you were receiving during your life.
So, if you have children, either dependent or disabled, waiting until the age of 70 to take Social Security seems like a better idea. Then, you and your children will get the most from your amount, and it can continue after your death.
If you don’t have any children or a spouse, you can start taking it at the age of 62 and enjoy your life.
4. Your current financial status
The most common reason for taking Social Security benefits earlier is that people can no longer work and need money to fulfill their basic needs.
It usually applies to people who work on low wages, and their old age doesn’t allow them to do part-time jobs to make their ends meet.
In that case, taking Social Security benefits earlier seems like the best option.
However, if you’re physically fit and can do another part-time job to manage your finances, we recommend doing that. Then, when you reach your 80s, you’ll have more money through Social Security than taking the benefits early.
So, waiting for the right age of 70 years to take your Social Security is better if you can manage your financial conditions through other means.
When you hit your 80s, you’ll at least get 100% of your Social Security benefits, which will help you combat your financial status in the long term.
Who Should Start Taking Social Security Benefits Early?
Summarizing the factors mentioned above, the following people should consider taking Social Security early:
- People who don’t expect to live until they reach 75 years of age or 12 ½ years after they start taking social security.
- People who don’t have a spouse or children relying on their benefits after their death.
- People who can no longer work.
- People in need of urgent money.
Although Social Security can prove advantageous for a short time, it will decrease your actual benefits to almost 30% if you take it before your retirement.
Who Should Wait Until Their Full Retirement Age Before Taking Social Security?
People who should wait until their full retirement age to take Social Security benefits include:
- Those with excellent health are expected to live for many years after full retirement age.
- Married couples and those with dependent or disabled children.
- People who are earning enough to meet their financial needs.
If you can fulfill all these criteria and do part-time jobs if the financial condition worsens, a better idea is to wait to take your Social Security.
For married couples, one can start taking Social Security early while the higher earner should wait till retirement. Then, the income of the one who earns more could decide the Social Security amount.
Final Words
When it comes to the right time for taking Social Security, we cannot directly answer. For example, some people will consider 62 as the right age, while others think that 70 years (or after retirement) is the best time to start taking Social Security.
However, the right time will depend on your age and your financial condition, health, family, and children.
If you can fulfill your financial requirements until retirement, and plan to live until at least 82, it is best to wait. After all, the longer you wait, the more money you’ll get through the benefits.
However, people facing any financial or health issues should consider taking their Social Security benefits before full retirement age. Although they will get less than the full amount, it could help them make ends meet.