"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." Also, with the average retired worker collecting just $1,979 a month in Social Security, relying on benefits too heavily puts many Boomers at risk financially, especially if they have an unexpected expense pop up."
Social Security replaces roughly 40% of pre-retirement income, with eligibility beginning at age 62 and full retirement age at 67. Claiming benefits before full retirement age reduces monthly payments, while delaying past full retirement age up to 70 increases benefits by about 8% per year. The average retired worker receives about $1,979 per month, so heavy reliance on Social Security can leave retirees vulnerable to unexpected expenses. Many Baby Boomers lack sufficient retirement savings, with about two-thirds under-saved and at risk of inadequate resources or significant financial strain in retirement. Building personal savings is recommended.
Read at 24/7 Wall St.
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