Article discusses impact of claiming age on Social Security benefits, suggests delaying for higher income.

From Nasdaq: 2025-02-16 03:44:00

Social Security serves as a crucial financial safety net for retirees, lifting over 22 million people out of poverty in 2023, with 80% to 90% of retirees relying on their monthly payout to cover expenses. Maximizing future benefits requires understanding how the payout is calculated and the impact of claiming age, as early claiming can result in significant reductions in monthly and lifetime benefits. Work history, full retirement age, and claiming age all play a role in determining the amount received.

Claiming Social Security benefits at age 62 offers immediate access to funds but results in a permanent reduction of 25% to 30%, while waiting until age 67 ensures no permanent reduction and full benefits. Research suggests that only 4% of retirees optimize their claiming age, with age 70 being the most beneficial for maximizing lifetime income. Future retirees stand to benefit from delaying benefits, leading to higher lifetime income collection.



Read more at Nasdaq: Here’s the Average Social Security Benefit at Ages 62 and 67