Are you on the verge of retirement? Then you are probably asking yourself when you should stop working and how long after that do you take Social Security benefits? While your first thought may be to take both as soon as you are able, the reality is a little more complicated.
Here are the top Social Security questions answered on when you should take Social Security Benefits.
- Does my Social Security benefits grow, even after I retire?
Regardless of when you retire, Social Security benefits continue to grow every year past age 62. In fact, waiting to claim until age 70 would give you on average a 76% higher benefit than claiming at 62. This growth rate is why it would make sense to delay Social Security while your other benefits grow, whether they be other assets or income.
- Can I take my Social Security benefits early?
In a recent study by the Bureau of Labor Statistics, nearly 40% of 55 to 64 aged adults are out of the workforce due to health issues. Claiming Social Security early would make sense for people approaching retirement who, for some unforeseen circumstance, are no longer able to work. Although you would not experience the same benefits, Social Security is there for you to take when you need it.
- When should I take my Social Security benefits?
Determining when you elect Social Security Benefits depends on assets and secondary income in your disposal and whether these pay for your cost of living. Overall, the longer you wait to claim Social Security the more benefits you stand to receive. On average, for every year after 62 you do not claim Social Security, your benefits grown by roughly 7%. The National Bureau of Economic Research backs these findings up by stating most people on the verge of retirement would be better off waiting to claim their Social Security Benefits.
Planning for retirement starts a lot earlier than most people think. When developing a customized strategy, make sure you are aware of all the choices you have claiming Social Security, creating secondary income, and mapping out your financial future. Speak with your Financial Professional today and make sure you have economic security in retirement.
Disclosure: This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.