"Baby Boomers are making a big mistake when it comes to Social Security. Unfortunately, it is a mistake that could cost them for the rest of their lives, and it is an error that's very difficult and often impossible to undo. Here's the Social Security choice that far too many Boomers are making that could end up coming back to haunt them."
"Baby Boomers are between the ages of 60 and 79, which is the age when they have a critical choice to make about their Social Security. That choice is exactly when to claim their benefits - and far too many Boomers are making a decision that could cost them a ton of money. Specifically, data from Bankrate shows that close to a quarter of all retirees claim their Social Security benefit at 62, making it the second most popular age to claim benefits."
"While you become eligible to start checks at 62, an early claim before your full retirement age will result in a reduction in your standard benefit. Furthermore, any claim before age 70 will result in retirees collecting less than the maximum income available to them since Social Security benefits keep increasing until age 70. By claiming earlier at a suboptimal age, retirees are leaving an estimated $182,370 on the table."
Baby Boomers are aged 60 to 79 and must choose when to claim Social Security benefits. Nearly a quarter of retirees claim at 62, 11.3% claim at 65, and 34.1% claim at 66, while only 9.1% claim between 70 and 75. Eligibility begins at 62, but benefits increase until age 70 and early claiming before full retirement age reduces the standard benefit. Research from the National Bureau of Economic Research finds more than 90% of younger Americans are better off waiting until 70 to maximize lifetime income. Early claiming can leave retirees an estimated $182,370 less in lifetime benefits.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]