"Social Security is only designed to replace about 40% of your working income, according to the Social Security Administration. They add, "Your full retirement age is 67. Starting retirement benefits before your full retirement age (as early as age 62) lowers this percentage, and starting benefits after your full retirement age (up to age 70) increases it." In addition, eligibility for retirement benefits starts at the age of 62."
""Everybody thinks Social Security isn't going to be there. Everybody is scared to death, but I wouldn't be," says Orman, as quoted by Kiplinger.com. By claiming early, "you're passing up an 8% increase each year in your Social Security from your full retirement age all the way to 70." Also, with the average retired worker collecting around $2,000 a month in Social Security, relying on benefits too heavily puts many Boomers at risk financially, especially if they have an unexpected expense pop up."
Social Security replaces roughly 40% of working income and has a full retirement age of 67. Benefits can be claimed as early as 62, which reduces monthly payments. Waiting beyond full retirement age up to 70 increases benefits by about 8% per year through delayed retirement credits. Many retirees collect around $2,000 monthly, making overreliance risky when unexpected expenses arise. Approximately two-thirds of Baby Boomers lack sufficient retirement savings. Building personal savings and not depending primarily on government payments is advised to avoid financial strain in retirement.
Read at 24/7 Wall St.
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