The Disastrous Social Security Decision You Might Be Making
Social Security is a key income source for millions of older Americans, so much so that 21% of married seniors and 45% of unmarried retirees rely on it for 90% or more of their income. If you expect to be in a similar boat, most likely due to a lack of retirement savings, then the last thing you'd want to do is slash your most substantial income stream on a permanent basis. But if you claim benefits early, that's exactly what will happen.
If you retire on Social Security alone, you'll be looking at roughly 40% of your previous income, assuming you're an average earner. But most seniors need a lot more than that to stay afloat financially. If that ship has sailed, because you're nearing your golden years without money in savings and you don't have a pension to fall back on, then you may be resigned to living on Social Security by itself, and somehow making that work, whether it's relocating to one of the cheapest areas of the country, downsizing to a much smaller home, or cutting back on most luxuries. But if that's the case, then you probably can't afford the additional hit you'll face by filing for Social Security early.
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Source Fool.com
