Deciding when to file for Social Security is crucial, particularly for seniors approaching retirement. Filing at age 70 provides the highest monthly benefit, increasing payments by 8% for each year past full retirement age (67). However, this choice has drawbacks, as delaying benefits means missing out on payments, and benefits may not maximize lifetime income if a person does not live long enough to receive a larger total. Evaluating one's break-even age is essential, balancing immediate needs against long-term income potential.
If you wait until full retirement age (FRA), you'll get your complete monthly benefit without a reduction. There's also the option to delay Social Security until age 70.
Doing so boosts your monthly payments by 8% for each year you hold off past FRA. With an FRA of 67, you have the opportunity to boost your monthly benefits by 24%.
Some people will tell you that 70 is the best age to take Social Security, but a claim at age 70 won't necessarily result in the most amount of money on a lifetime basis.
It's important to figure out your break-even age in the context of claiming Social Security, which is when you'd get the same lifetime benefit whether you file sooner or later.
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