Why You Could File Early For Social Security

You can choose when to file for Social Security benefits once you become eligible at age 62. You can hold off until you reach full retirement age (FRA), which means you may be eligible for a higher monthly payment. Your full retirement age is either 66, 67, or anywhere in between, depending on your birth year.

You can also apply for Social Security early if you’re ready to accept a lower monthly payout for the rest of your life. On the other hand, delaying your Social Security application past FRA will increase your payments. This incentive expires at age 70, but up until then, you can permanently increase your social security benefits by 8% for every year you wait to file after FRA.

It’s common knowledge that applying for Social Security before FRA is a mistake because it ensures you’ll receive a lesser monthly income for the rest of your life. Although filing early can lock in a lower compensation, it’s not always a bad idea.

View the large picture

Some retirees wind up relying substantially on Social Security to support themselves. However, suppose your financial situation is intense. In that case, you might have the flexibility to apply for your social security benefits earlier and utilize the money to accomplish objectives that are simpler to complete when you’re younger, like hiking particular mountains or taking part in active trips.

Imagine that you have a $2 million nest egg at your disposal. If you apply for Social Security early, you might receive a smaller monthly benefit, but you might also have enough funds to compensate for that loss. As such, you can get your money when you can use it better.

In addition, no one has a crystal ball, so you never know how old you’ll live. But by claiming Social Security before FRA and receiving the money earlier, you can be financially better off if you don’t live an exceptionally long life.

Filing early enables you to maintain better health. A stressful office job that frequently elevates your blood pressure and requires you to lead a sedentary lifestyle could have detrimental physical repercussions. Prioritizing Social Security over FRA may allow you to quit your employment and lead a healthier lifestyle.

Another reason to take your benefits early is if you need to pay off certain debts before you can retire. Early Social Security benefits can assist you in paying off high-interest debt. The 8% annual increase in benefits you receive for each year you wait past full retirement age may not be worth the higher monthly benefit, depending on the interest rate you’re paying. You might be able to keep more of your benefits in the future if you use the early benefits to reduce or pay off your debt earlier.

You can also take your benefits if you want to start a business. For instance, you might have delayed beginning a business in the past because you wouldn’t make enough money. Benefits from social security may give you enough money to start your own business. And if your business succeeds, the money it brings in might be more than enough to make up for the benefits that will eventually be cut.

Lastly, you should consider filing early if nobody is relying on your benefits besides you. The Social Security Administration may give money based on your benefits to a surviving spouse, child under 18, or child with a disability in the event of your passing. They may be entitled to 71.5% or 100% of your benefit. Even after you’re gone, a disabled child can continue to get 75% of your monthly payments. You might want to retire early if no one else can receive social security benefits based on your own record because no one depends on that money.

Ignore the warnings and go after what you feel is best

If you’re considering filing early, you’ll need to weigh the risks of accepting a lesser Social Security payout for life. However, you shouldn’t assume that filing for Social Security benefits before FRA is a bad idea.

Instead, consider your unique situation and the advantages of claiming your benefits a few years early. You might discover that earning your money sooner exceeds the drawback of receiving a lower monthly check for the rest of your life.

Contact Information:
Email: [email protected]
Phone: 9568933225

Bio:
Rick Viader is a Federal Retirement Consultant that uses proven strategies to help federal employees achieve their financial goals and make sure they receive all the benefits they worked so hard to achieve.

In helping federal employees, Rick has seen the need to offer retirement plan coaching where Human Resources departments either could not or were not able to assist. For almost 14 years, Rick has specialized in using federal government benefits and retirement systems to maximize retirement incomes.

His goals are to guide federal employees to achieve their financial goals while maximizing their retirement incomes.