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Retirees Who Claim Social Security At An Early Age Should Reconsider Their Decisions

The Social Security Administration provides benefits to retired individuals to cover household expenses. Retirement planning is essential for the individuals to receive maximum benefits and attain financial security post retiring.

Retirees Who Claim Social Security At An Early Age Should Reconsider Their Decisions

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The retirees don’t have an additional source of income, and they are dependent upon social security to maintain their livelihood. The Motley Fool reports that most individuals apply for the benefits at 65, which is not the right age as it reduces the benefits. The retirees should find the right age to avail of Social Security to receive the maximum amount.

Retirees Need To Delay The Social Security Till FRA To Enjoy Maximum Benefits

The reports suggest that the earlier one applies for social security, the smaller the benefits are. The beneficiaries need to delay the application after retirement to maximize the amount and other social security benefits. The retirees should apply for the post-retirement benefits after attaining the Full Retirement Age (FRA); this allows them to receive maximum benefits as per their eligibility. The FRA for the individuals born before 1955 is 66 and 67 for those born after 1960. The Motley Fool reports that the individuals who apply for social security at 65 cannot optimize their benefits; such retirees receive 13.3% less money than the late applicants. The average monthly payment for retirees will be $1,657 in 2022.

Individuals applying early for the benefits will receive $220 less per month. On average, a married retired couple will receive $39,678 annually after applying for social security at 67. The couples who use at 65 will receive only $34,478 annually. The maximum amount for a Social Security beneficiary is $3,895 monthly. The reports suggest that the individuals who delay their benefits beyond the FRA will receive more than 100% of the monthly amount.

Delay Beyond FRA Will Produce Higher Benefits

]The maximum age until retirees can delay their benefits is 70; such individuals are likely to receive 24% more benefits than those who claim at FRA. The retirees need to assess their situation before applying for the payments; they need to choose the application pattern that suits their lifestyle and needs. Individuals suffering from health issues are better off availing the social security at an earlier age.

 

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