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Check The Consequences Of Claiming Social Security Benefits At Age 70

Social Security Benefits
Social Security Benefits; Source- Newsweek

You can theoretically apply for Social Security at any age after turning 62. But generally speaking, you’ll hear that the latest age to apply for Social Security is 70. It’s not like if you file a claim at 71 or 72, you won’t be allowed to do so. Instead, there is no monetary incentive to wait until after you are 70 to file for Social Security.

Social Security Benefits

Social Security Benefits; Source- AARP

Maximum Social Security Benefits

At full retirement age (FRA), you are eligible for your full Social Security benefit depending on your individual earnings history. If you were born in 1960 or after, that age is 67. Benefits will be reduced in the process of applying before FRA, usually permanently. However, if you wait until after FRA to file for Social Security, your monthly income will be increased for the rest of your life. However, you can only accumulate delayed retirement credits which increase your Social Security benefits until you reach 70 years old. Thus, there’s no need to wait any longer than that.

Social Security Benefits At 70

Maybe your goal is to lock in the maximum monthly income that you qualify for by filing for Social Security at age 70. Should you decide to claim Social Security at age 70, you may need to work later than the majority of your contemporaries. However, you could be prepared to work longer in your current position to receive a larger monthly payout for the duration of your retirement. However, just because you’re willing to put in the work doesn’t guarantee that you will be successful. You have no idea when health problems can make it difficult for you to work. Furthermore, those health problems don’t have to be yours.

Your spouse’s health may have gotten worse while yours is still good by the time you reach your late 60s. You might not be capable of maintaining employment if you are compelled to take on a caregiving duty. As a result, you might have to start collecting Social Security benefits before turning 70. In a similar vein, your business may fail when you reach 65. Furthermore, let’s face it: getting employed when you’re thought to be close to retirement, even if you’re extremely skilled, might be difficult. Age discrimination is strictly prohibited. However, it’s a problem you can run into if you lose your job later in life.

Higher Monthly Benefits

You might not even be able to be patient until FRA starts collecting Social Security benefits in that case, much less until you’re 70. Deciding to start collecting Social Security benefits at age 70 is perfectly acceptable. However, don’t allow it to be an excuse for you to reduce your retirement savings while still employed. Sure, if all goes according to plan, you might receive a higher monthly benefit, enabling you to live on a lesser nest fund. However, you shouldn’t let your savings go because there’s no assurance you’ll be able to collect Social Security when you’re 70 years old. Additionally, you shouldn’t use a bigger benefit as a substitute for increasing your 401(k) or IRA contributions.

 

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