Title: Why I Might Opt for Social Security Retirement Before Turning 70
Filing for Social Security at 70 is often advised for the largest potential payments, with an average retiree receiving around $740 more per month at 70 than at 62, according to 2023 data from the Social Security Administration. However, early filing can be beneficial in certain circumstances. Here are three reasons I'm considering taking Social Security before age 70, and you might too:
1. Earlier Retirement Plans
Contrary to popular belief, you don't have to take Social Security when you retire. If you're planning to retire in your early 60s, filing early could be a smart move. Although it reduces your monthly payments, it could extend the life of your savings, making early retirement financially more viable. Just remember to factor in the reduction in your benefits.
2. Life's Unpredictability
Life can be unforeseeable. Around 47% of people currently receiving Social Security said they started collecting benefits due to unexpected life events such as health issues, job loss, or financial problems, according to a 2024 survey. Delaying benefits until 70 and then encountering health issues might lead to regrets. While early filing requires financial sacrifices, the peace of mind of having benefits sooner could be worth it.
3. Flexibility in Retirement
Early filing offers the advantage of a potential do-over within 12 months of claiming. You can withdraw your application, repay the benefits, and file again when you're ready. Additionally, suspending your benefits at your full retirement age and starting again later leads to larger checks. This flexibility can be valuable in unpredictable retirement situations.
The decision to take Social Security early or delay it until 70 depends on your personal circumstances and retirement goals. Delaying benefits can maximize your monthly income, but there are also valid reasons to consider filing early.
In light of your early retirement plans, filing for Social Security benefits earlier rather than later could help extend the life of your savings, making the transition financially more manageable, despite the potential reduction in your monthly payments. Moreover, considering the unpredictability of life, starting to receive Social Security benefits early might prove beneficial if unexpected events, such as health issues or financial problems, arise before you reach 70.
