3 Reasons to File for Social Security on Time
Choosing when to file for Social Security is a key decision that will affect your finances for the rest of your life. Social Security gives you the right to claim retirement benefits once you reach age 62, but what the Social Security Administration considers to be "on time" is your full retirement age, which depends on your year of birth and is currently rising from 66 to 67. Waiting to file for benefits has its drawbacks, but there are also good reasons why you should consider waiting beyond age 62 to file for Social Security. Let's discuss three of them.
Image source: Getty Images.
Many retirees find that filing for Social Security on time at full retirement age is a happy medium between getting benefits as early as possible and maximizing the size of their monthly payments by waiting until age 70. For those who turn 62 this year, if you claim now, you'll lose a bit more than 25% of the monthly benefit you would have received had you waited until full retirement age to start taking Social Security. If you file "on time," you'll have to wait a bit more than four years to start getting payments, but they'll be significantly bigger, which will go a long way toward covering your retirement expenses.
Source: Fool.com