33% of Near-Retirees Plan to Claim Social Security Early -- Here's Why That May Be a Big Mistake
Social Security serves as a critical source of income for millions of retired seniors. And that's not necessarily a good thing. Those benefits will only replace about 40% of your pre-retirement income if you're an average earner. But most seniors need about twice that much income to maintain a reasonably comfortable lifestyle.
That's why it's ideal to enter retirement with a decent chunk of savings. But if that's not the boat you're in, you should at least make a point to wait until your full retirement age (FRA) to claim Social Security, since that's when you're entitled to your full monthly benefit based on your earnings history. If you file for benefits before FRA, you might end up living a very cash-strapped existence.
In a recent Allianz Life study, 33% of near-retirees said they plan to claim Social Security before reaching FRA. And going that route could mean winding up with a much lower monthly benefit for life.
Source Fool.com
