Waiting to claim Social Security until age 70 will boost benefit amounts, but there is no reason to hold off collecting after that point. Financial incentives such as delayed retirement credits end once an individual reaches age 70. In Texas and other states, those planning for long-term care may want to consider the advantages of waiting.
Full monthly Social Security benefits are based on earnings and can be collected once a person reaches the full retirement age of 66 or 67, depending on birth year. Seniors who wait until age 70 can boost benefits by eight percent for each year that they hold off collecting. Statistics show that only three percent of people wait until age 70, even with the lure of free money. The most popular age is 62, even though filing early means reduced benefits.
Those seniors who have unexpected health issues or are in poor health may benefit from filing sooner rather than later. It is not easy to think about one’s mortality, and for some, the decision to file early is often determined by current health issues and life expectancy. Social Security may be a vital source of income during senior years, so it is important to choose wisely and understand the pros and cons of filing at different times.
The prospect of planning for retirement and long-term care may seem daunting; however, living out one’s golden years should be a happy and joyous time in a person’s life. Seniors who are unsure about Social Security benefits and the best time to file may want to consider enlisting the help of an attorney. In Texas, a lawyer who is savvy about Social Security can explain all options and help with the decision-making process.
Source: fool.com, “4 Things You Should Know About Filing for Social Security at 70“, Maurie Backman, Jan. 24, 2018