The Shocking Truth About When to Take Social Security Benefits

It might seem to make sense waiting to start social security but the truth is delayed benefits aren’t all they seem.

You know you can start taking social security at 62 but then hear a juicy incentive. Wait until you’re 65 to retire and you’ll get an extra $227 a month.

How Social Security Benefits and Delayed Credits Work

Employers and workers pay a certain percentage of your income into a social security trust fund. For those payments, you earn the right to a monthly benefit when you start collecting later in life.

How Social Security Benefits and Delayed Credits Work

Once you start collecting social security, you receive a fixed amount every month for as long as you live. That fixed amount currently averages $1,360 a month for people that wait until their full benefit age.

The Myth Behind Delayed Retirement Benefits

An extra $200 a month from age 65 to 85 means a payout of nearly $50,000! That’s awfully tempting, especially for someone that can start withdrawing money from investments to cover living expenses.

The Numbers Behind When to Take Social Security Benefits

Someone waiting to collect benefits at 65 years of age would receive an additional $2,725 a year in benefits.

If they lived to 80 years old, that would mean an additional $43,600 in exchange for giving up the $11,424 a year they would have collected those first three years after 62 years of age.

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