Social Security Benefits: Waiting until you’re 70 to claim has its perks
Waiting until you’re 70 to claim your Social Security benefits has its perks. You can get up to 8% more for each year you delay. This means a higher income for life from Social Security.
But, deciding to wait until 70 has its downsides. There are risks and things to think about. This choice might not be the best for everyone.
Factors to Consider When Claiming Social Security at Age 70
Claiming Social Security at 70 requires careful consideration. Delayed retirement credits increase your monthly benefit, but it may not be ideal for everyone. Evaluate your earnings, spousal benefits, and healthcare costs. Planning is essential for maximizing your benefits and ensuring a secure retirement.
Think about delayed retirement credits if you wait until 70 to claim Social Security. You earn these credits from your full retirement age up to 70. They add 8% to your monthly benefit for each year you wait past your full retirement age. So, waiting can make your monthly benefit a lot higher for the rest of your life.
Yet, waiting until 70 isn’t the best plan for all. If you earned less and will get spousal benefits, claiming at 70 might not be as smart. In some cases, claiming at your full retirement age could be better. Starting earlier might help you get the most out of your total Social Security benefits over your life.
Consider if your spouse filed for benefits already. If they haven’t, you might have a better option. You could apply for your benefits at your full retirement age and then switch to spousal benefits later. This strategy could increase the total yearly money you and your spouse get.
Planning your finances well is crucial if you’re considering claiming at 70. Start by considering healthcare costs. When you stop working and lose job-based health coverage, you’ll need to sign up for Medicare at 65. Medicare Part B entails monthly premiums, starting at $174.70, which may increase based on your income. Delaying Social Security benefits may necessitate budgeting for these expenses.
When deciding on Social Security at 70, consider all these aspects. Your health, financial goals, and personal details matter a lot. By evaluating these factors, you can make a decision that works best for you. It can help you get the most of your Social Security benefits and lead to a secure retirement. For more insights on maximizing your retirement income
Pros and Cons of Claiming Social Security at Age 70
| Pros | Cons |
|---|---|
| Higher monthly benefit | Deferred income until age 70 |
| Possible larger lifetime benefit | Potential health and financial considerations |
| Ability to optimize spousal benefits | Lost income if in poor health or shorter life expectancy |
Financial Considerations When Claiming Social Security at Age 70
When deciding to claim Social Security at 70, consider Medicare costs. You’re required to enroll at age 65, and Medicare Part B entails monthly premiums, starting at $174.70. Delaying SS may impact your long-term finances, so plan accordingly.
You have to pay for Medicare Part B. It covers seeing the doctor and some services. You pay at least $174.70 each month. But the amount can change depending on your income. So, if you wait to claim Social Security until you’re 70, plan for these costs.
Delaying your SS can affect your long-term finances. Think about the monthly Medicare costs carefully. By doing this, you can choose what’s best for your retirement plans.
