Carol's original plan to delay Social Security until age 70 was based on a sound financial principle: for every year she waits beyond her full retirement age (FRA), she will receive an 8% increase in her monthly benefits. For someone whose full retirement age is 67, waiting until 70 could mean a 24% increase in their benefit. This is a significant boost, especially considering that Social Security payments are adjusted for inflation annually.
However, there are downsides to waiting. Carol would be forgoing several years of income, which could strain her current budget. Given rising costs for essentials like food, healthcare, and housing, Carol might struggle to cover her expenses if she relies solely on her savings.
Collection
[
|
...
]