Is It Ideal To Wait Until Age 70 To File For Social Security?

Preschoolers at Stanford’s Bing Nursery School had a choice more than 50 years ago. Either they could consume one marshmallow right once or wait twenty minutes and consume two marshmallows. The children were then monitored for many years. Those who waited performed better in many areas, including obtaining increased SAT scores and feeling more valuable.

The marshmallow test is applied differently to American people who are approaching retirement. At age 62, they can make an early benefit claim. They could wait until their full retirement age or hold off until they are 70. The benefits increase with waiting time.

It might seem obvious to put off doing something as long as possible. But is it essential to delay filing for Social Security payments until age 70? Here are the results of the statistics.

Opportunity Of Waiting

Let’s say you consistently received the optimum Social Security benefit amount throughout your employment and decided to file for benefits in January 2022 at 62. According to Social Security Administration, your monthly retirement pension would be $2,364.

Suppose you wait until you are 67 years old to file for benefits. Your new paycheck would be worth $3,568 per month. However, if you waited to apply for Social Security payments until you were 70, you would be paid a staggering $4,194 monthly.

This isn’t as good a deal as the 20-minute wait for double as many marshmallows for toddlers. However, delaying when applying for Social Security retirement benefits has financial benefits.

If you wait until age 67 instead of 62 to file for Social Security benefits, your monthly allowance will be about 51% higher. Your monthly payment would increase by more than 17.5% if you waited until age 70 instead of applying for benefits at 67.

Is it wise to wait until age 70 to file for Social Security benefits? 

Your monthly check will indeed be greater if you wait. However, it’s crucial to consider your overall financial gain.

The cumulative benefits for receiving Social Security at ages 62, 67, and 70 were studied. The estimates were based on the highest Social Security payment levels.

The cumulative rewards for filing at age 67 will be greater at age 76 than those for filing at age 62. The total benefits for filing at age 72 will surpass those for filing at age 67 by the time you are 87.

Here are perhaps the most significant statistics. 

In the United States, males live an average of 75 years. For women, it is 81. So, according to statistics, most Americans wouldn’t gain more from delaying Social Security benefits until age 70 since they won’t live long enough to make it profitable.

The value of money and time has also not been taken into consideration. Even if you didn’t require benefits from Social Security at age 67, you could still apply for them and use the money to buy Treasury bonds or another low-risk investment. Doing so would push out just how long it will take to vindicate the delay in receiving benefits even further.

According to Social Security Administration data, only 5% of men and 7% of women wait until they are 70. About half of Americans get Social Security benefits before reaching full retirement age, frequently due to financial necessity. Moreover, a quarter of males and just under a third of women begin collecting benefits when they become eligible for Social Security at age 62.

The Statistic Is Not You

Is it unquestionably true that you shouldn’t wait to apply for Social Security benefits in light of this analysis? No. You are not a number.

You might live a life that is significantly longer than typical. You may be able to collect substantially more overall benefits than you would have if you had done so earlier in life y delaying your Social Security claim.

Regardless of your choice, feel free to indulge in a few marshmallows. There isn’t a psychologist present.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

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Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.