"Don't settle for a reduced Social Security benefit. If you are in good health, the best financial move you can make is to not claim Social Security before you reach your Full Retirement Age. There's a reason Orman included that caveat about being in good health. If your health is poor going into retirement, then it may actually make sense to claim Social Security early, despite the fact that doing so will reduce your payments on a monthly basis."
"However, Orman insists, if you're healthy and believe you'll live a reasonably long life, then you may be better off claiming Social Security at FRA to avoid a reduction in your monthly payments. If you don't have a lot of savings, your nest egg might eventually run out on you. But Social Security is guaranteed to pay you your monthly benefits for life. So the more money you're able to lock in from the start, the more financially stable your senior years might be."
The earliest age to claim benefits is 62. Filing at full retirement age (between 66 and 67, based on birth year) guarantees the complete monthly benefit without reduction. Claiming Social Security early reduces monthly payments and can lower lifetime income if a person lives many years. Early claiming may make sense for people in poor health or with limited life expectancy to increase near-term income. Delaying benefits past full retirement age increases monthly payments, with approximately an 8% boost per year up to age 70. Strong savings and longevity prospects favor waiting to secure larger lifelong benefits.
Read at 24/7 Wall St.
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