If you are an employee who is close to his or her retirement age then you might be wondering about when I should start taking my retirement benefits. If so, then you may want to know that there are many factors that will influence this decision of yours. And you have to scrutinize each factor closely before you make a decision.
6 factors that help you decide when to take your retirement benefits
- Taking Retirement Benefits early: If you want to take these benefits early rather than waiting for them to ripe, you will get the benefit of receiving more number of checks. This option is best suited for people who do not have any other source of income.
- Waiting for 70: In case you have another source of income then you may want to wait until you turn 70 years before applying for the benefits. It will lead to ensuring that you get less number of checks that have a fat amount coming your way.
- Spouses’ Financial Condition: If you are married then the financial condition of your spouse will be a major deciding factor. If your spouse has a stable income source, you both can live off his or her income and let the retirement benefits increase over time. If not, you will be forced to start getting your benefits early.
- Medical Expenses: In case you or your spouse has some medical condition that requires regular treatment, then there is no use in letting your retirement fund grow. You may want to start making use of it early so that you don’t have to get loans for the medical treatments when you have no job to pay them off.
- Number of dependants: If you have a child or a grandchild who is totally financially dependent on you then too you may want to take these benefits early.
- Life Expectancy: People with higher life expectancy may want to let the retirement benefits flourish as long as they could afford it. It will ensure that you live independently until the day you breathe your last. It will also prevent you from begging for money from your friends and relatives when your physical health is almost lost.
Though all these tips related to retirement benefits are valuable, you must not forget to consult with a finance expert before making any decision.