"If you claim Social Security at full retirement age (FRA), you'll get your exact monthly benefit without a reduction. FRA is 67 for anyone born in 1960 or later. If you claim Social Security before FRA (and the earliest age to do so is 62), your benefits will be reduced. If you delay your claim past FRA, each year you wait, until age 70, gives your benefits an 8% increase."
"When it comes to claiming Social Security, many experts will say that people in poor health should consider taking benefits on the early side. The reason is that someone with bad health may not live very long. So if they claim Social Security early, they might come away with a larger lifetime payout despite reducing their benefits on a monthly basis."
"But when a couple with health issues asked Orman when to claim Social Security, her response was that they shouldn't rush to sign up for benefits. Rather, she advised them to wait. Orman's reasoning was that people with chronic health issues often end up living longer than expected. So in some cases, filing for Social Security early means shorting themselves on lifetime income."
Monthly Social Security benefits depend on lifetime earnings and adjusted by the age at which benefits are claimed. Claiming at full retirement age (FRA) yields full monthly benefits; FRA is 67 for those born in 1960 or later. Claiming as early as 62 reduces monthly benefits, while each year delayed past FRA up to age 70 increases benefits by 8% per year. Conventional reasoning often recommends earlier claiming for those in poor health to maximize lifetime payout, but people with chronic conditions can outlive expectations. Delaying claims can increase lifetime income for some, and personal financial, health, and spousal factors should be weighed.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]