"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."
"But if you wait until your full retirement age, you'll receive 100% of your earned benefits. For every year you wait beyond full retirement up to 70, you can receive another 8% boost to your benefits. "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.""
Social Security is intended to replace about 40% of pre-retirement income, with eligibility starting at age 62 and full retirement age at 67. Claiming benefits before full retirement age reduces monthly payments; claiming after full retirement age up to 70 increases benefits by roughly 8% per year. Relying heavily on Social Security can leave retirees vulnerable because average benefits are about $2,000 per month and unexpected expenses can strain budgets. Financial advisors warn against over-reliance on government benefits and recommend building personal savings. Approximately two-thirds of Baby Boomers lack sufficient retirement savings and many face inadequate resources or significant financial strain.
Read at 24/7 Wall St.
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