If you were born in 1960 or later, your full Social Security retirement age is 67. In other words, he will have to wait until that age to claim his Social Security check without his standard benefit being reduced by early filing penalties. .
Unfortunately, if you plan to start your checks at your full retirement age to get a more generous monthly payment, there’s a very real chance this won’t work for you. Here’s the big reason you may need to reconsider if you’ve set 67 as the deadline to start paying Social Security.
Planning to claim benefits at age 67 may not work for a simple reason
There’s a big reason why you may need to reconsider your plans to claim Social Security at age 67: You may need to start their controls before reaching this age.
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See, many people want to work into their 60s or even into their 70s. Often this desire is driven by financial concerns. If you think you’ll have too little saved to support yourself, working until age 67 or older can help you boost Social Security, give you more time to invest for the future, and reduce the time you have to rely on savings.
The only problem is that there is a huge gap between when people want to retire and when they actually end up leaving the workforce. In fact, data from the Employee Benefit Research Institute reveals that the median retirement age among current retirees is 62. This is despite the fact that the projected median retirement age among current workers is 65, with many younger workers anticipating an even later retirement date.
This research suggests that many people need to stop working sooner than expected. And if you’re one of the many who must leave your job well before age 67, chances are you’ll have to claim Social Security benefits as soon as your paychecks stop, since you’ll likely be relying on this money. to make ends meet.
Be prepared for an early Social Security claim, even if you expect one later
Unfortunately, while you may have the best of intentions when planning to claim Social Security at age 67, you could find yourself in a tough spot if this plan doesn’t come to fruition.
If you develop a medical problem, have family demands, or can’t find a job that suits you as an older adult, you may need to claim your benefits sooner than expected, and therefore before your full retirement age.
You don’t want to be caught off guard if this happens, so it’s best to plan for retirement assuming you’ll have to leave your job early and get a reduced Social Security benefit as a result of an early claim. By anticipating this likely outcome, you can save enough to supplement your benefits and support yourself throughout your retirement, even if it happens sooner than planned.
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