Identifying the right Social Security filing age is a decision many seniors struggle with. And that's understandable, since your age at the time of your claim will impact what your monthly Social Security check looks like for life.
The earliest age you can sign up for Social Security is 62. And that's a popular choice among seniors despite the reduced benefit it results in.
You're first entitled to your complete monthly Social Security benefit based on your personal wage history at full retirement age . That age is 66, 67, or somewhere in between, depending on your year of birth.
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You can also delay your Social Security claim past full retirement age. And for each year you do, up until age 70, your monthly benefit gets an 8% boost.
Nobody is going to force you to sign up for Social Security when your 70th birthday arrive. But since delayed retirement credits stop accruing at 70, it's generally regarded as the latest age to claim benefits.
You may be tempted to hold off on Social Security until age 70 for the higher monthly payday. But filing much sooner might ultimately be a better choice for one big reason.
When you want to enjoy retirement to the fullest
The danger in claiming Social Security early is twofold. Not only will it result in a smaller monthly check, but if you end up living a longer life, it'll result in less lifetime income from the program, too.
That's only a problem, however, if you choose to make it one.
Many people will tell you that if you have a family history of longevity and great health that's likely to keep you alive well into your late 80s or beyond, then it pays to claim Social Security at 70 for a larger lifetime paycheck. And the numbers don't lie -- delaying your filing does , in fact, lead to more money from Social Security all in.
But this strategy overlooks one key thing -- your happiness and desire to meet your lifelong goals.
Let's say you're able to retire at age 62, and that you've saved enough in your 401(k) or IRA to cover your basic expenses for a good 30 years. At that point, what Social Security can do for you is put money in your pocket that allows you to make the most of your time, whether it's traveling, pursuing hobbies, or even starting a small business you're excited about.
Now you could force yourself to wait until age 70 to start collecting money from Social Security. But why do that if you've retired much earlier and want to start enjoying your life immediately?
And to be clear, you deserve to do that after decades of hard work. So if claiming Social Security well ahead of age 70 allows you to make the most of the years leading up to age 70, then it's worth doing.
No one has a crystal ball
It's not a given that come age 70, your health will suddenly take a turn for the worse. But let's say you're retiring much earlier than 70 and are in great physical shape. That's something you should absolutely take advantage of. And a monthly check from Social Security could be your ticket to enjoying your 60s and maximizing your strong health before things possibly take a turn.
Remember, none of us can see into the future and determine what it has in store. So if you're healthy and excited to do different things long before age 70, let yourself claim Social Security long before age 70.
It may not be the move that puts the most money in your bank account. But it could end up being the move that leads to a retirement you're happy with.
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