3 Reasons to Claim Social Security Early
Many people take Social Security as early as possible, choosing not to wait several years longer to reach the current full retirement age of between 66 and 67 years old. For some, the decision is motivated by necessity, especially in light of the current retirement savings crisis that has millions of Americans financial unprepared for the demands of post-work living. Yet beyond simply having to have money to cover living expenses, there are some situations in which claiming early actually produces more money from Social Security than waiting would. Many of them involve couples who plan together in order to maximize their total lifetime benefits. Below, we'll go through what your claiming decision can allow your family to do in three of those situations. That should give you an idea of what you should look at as you consider your own decision on when to claim Social Security.
Two-earner families have an opportunity to use an early claiming strategy to maximize total benefits while getting the income they need early in retirement. In this scenario, the lower-earning spouse claims retirement benefits early, accepting a smaller monthly payment in exchange for getting those payments sooner. Meanwhile, the higher-earning spouse delays retirement benefits, allowing them to grow and earn delayed retirement credits that can dramatically increase total monthly payments.
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Source: Fool.com
