Three Reasons You Might Want to Take Social Security Early
Nowadays, it seems you can’t read or watch the news without some report on the state of Social Security. It’s become common knowledge that it is facing a funding shortfall and will be forced to slash benefits in about 10 years if nothing is done to shore up the trust fund. This has many people wondering if they should take their retirement benefits early.
According to an article by MarketWatch, you can claim Social Security as early as 62, but you will receive a permanently reduced monthly benefit. To receive full benefits, you must wait until you reach full retirement age, which is 67 for anyone born after 1960. If you can hold out until you turn 70, you will receive 132 percent of your full retirement benefit amount.
While the idea of receiving a bigger benefits check may sound appealing, a Yahoo! Finance article states there are three very compelling reasons why you might want to take benefits early:
- You’re ready to retire, and the early retirement penalty isn’t an issue for you.
- You face a financial emergency.
- You have health issues, especially if you might not live long enough to reach full retirement age.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
