This Could Be the 1 Flaw in Your Social Security Plan
Your Social Security benefits are calculated based on your lifetime earnings -- specifically, your wages during your 35 highest-paid years in the workforce. But it's possible to raise your benefits by delaying them for as long as possible.
You're entitled to your full monthly benefit based on your earnings history once you reach full retirement age, or FRA. That age is either 66, 67, or 66 and a specific number of months -- it depends on your year of birth. You're allowed to claim benefits ahead of FRA, but doing so will shrink them in the process -- for life. You can also delay benefits past FRA, and for each year you do, you'll raise them by 8%, up until age 70.
Thus, planning to file for Social Security at age 70 is a solid retirement strategy. That extra income could buy you more wiggle room later in life to travel more, cover unplanned healthcare costs, or spend more time pursuing hobbies. But while it's smart to aim to sign up for Social Security at 70, that may not end up happening for one key reason: You're forced to retire early.
Source Fool.com
