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Will Taking Early Social Security Make You Regret It ? 19% Claim To Do So

For millions of American seniors, Social Security provides more than simply a straightforward monthly cheque to cover expenses for living. You must choose, and it involves trade-offs like other financial choices do. The main components of your Social Security payout each month are two things. The first is your 35 highest-earning years’ average indexed monthly earnings (AIME) throughout your working lifetime. Unfortunately, you don’t have much control over that number if you’re close to retirement. When you decide to begin collecting your Social Security payment, which you can do around any age between 62 to 70, is the second factor over which you do have influence. You will earn more money if you put off receiving your reward.

Americans Regret Collecting Social Security Too Soon

You should think about factors including your healthcare requirements, when you expect to retire, your family situation, and other income sources like investments when deciding whether to accept Social Security at age 62, 70, or a certain age in between. It might not arrive as a surprise that a few Americans regret obtaining Social Security too soon given the difference in benefits around starting at 62 as well as starting at 70. 19% of survey respondents said they regretted accepting Social Security too soon, according to recent research from the National Bureau of Economic Research.

Having insufficient savings, foregoing insurance for long-term care, and not working more were some of the retirees’ other top regrets. According to the study, men regretted receiving Social Security benefits too soon 21% more than women did, and Blacks regretted getting benefits too soon 37% more than whites did. The most common age to begin receiving Social Security payments is 62 years old, which comes after age 66, the full age of retirement for anyone born in 1954 or before. Those who began receiving Social Security payments in 2022 included 22.9% of males & 24.5% of women who were 62 years old, while the proportion of those opting to do so has decreased over the past ten years.

Support Yourself Financially

When you decide to begin receiving Social Security benefits will rely on a variety of circumstances, along depending on your requirements, it can make sense to start doing so sooner rather than later. For instance, you might experience an urgent financial need or have cause to think that you won’t survive the typical lifespan. It’s not always a terrible idea to take Social Security benefits early. Regardless of when you begin collecting from retirement, if you survive to the average duration of life, you should receive around the same amount. However, it probably seems sensible to put off receiving Social Security payments as long as you can if you’re in excellent health and either working or have the means to support yourself financially during your 60s.

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