If you’re over the age of 62 and you’re trying to decide when you should start taking Social Security benefits, one option to consider is delaying the start of benefits. There are several strategies for delaying benefits and several potential benefits to delaying the start of your Social Security retirement benefits.
Reap the Benefits of Waiting for Social Security Benefits
When you delay your start of Social Security benefits, you could potentially end up with a higher monthly benefit. Social Security benefits are usually available starting at the age of 62, but those who wait until age 67 can receive the ‘full’ retirement benefits.
The longer you wait to take Social Security retirement benefits, the higher your benefit amount will be when you do finally start receiving payments. The U.S. Social Security Administration (SSA) calculates your benefit amount each year and you can take advantage of the longer waiting time to accumulate additional benefits.
There are a few strategies for delaying Social Security benefits, such as:
Spousal Benefits: You may be entitled to one-half of your spouse’s Social Security benefits if your spouse reaches the full retirement age.
Retirement Benefits:If you have your own Social Security payments that you have earned, you can start taking them at any age depending on how much money you need at the time.
Disability Benefits: If you are disabled, you may be able to receive some disability benefits to help delay the start of your Social Security benefit payments.
Tax Benefits
If you wait to take Social Security retirement benefits until age 70, then you may also qualify for some tax benefits. If you are eligible for an additional benefit due to waiting longer, that extra income will be subject to taxes. However, if you wait until 70, you may be able to avoid or greatly reduce some of the taxes due on the extra income.
The longer you wait to start taking Social Security benefits, the higher your monthly payments will be. This additional income can provide you with more financial freedom and can help you reach your financial goals sooner.
Approaching Retirement Strategies
If you’re planning on delaying your start of Social Security benefits, there are some things to consider for your retirement strategies.
Calculate your estimated Social Security benefits: Before you make any decisions, you should get an estimate of your Social Security Retirement benefit amount.
Consider other income: Also, take into account any other sources of income that you may have in retirement such as pensions, investments, and annuities.
Anticipate the costs: Delaying your start of Social Security benefits usually means that you will incur more health care costs and may not be able to contribute as much to your retirement savings.
Waiting to take Social Security benefits is a personal decision and should be based on your individual needs and goals. If you’re considering delaying your start of benefits, it’s important to look over all of your options, discuss the pros and cons of each option, and talk to an SSA representative or a financial advisor about the best strategy for your retirement.
Delaying Social Security benefits can provide you with higher monthly payments for the rest of your life, so it’s important to weigh the pros and cons carefully before making a final decision.
The SSA offers helpful information and advice on the best strategies for delaying Social Security benefits, so be sure to visit their website to explore your options and make an informed decision.
