Many people plan to claim Social Security in their late 60s, but things don’t always go as planned
Your full retirement age for Social Security is 67 if you were born in 1960 or later. To put it another way, you’d have to wait until you’re that age to file for Social Security and avoid having your regular payment lowered due to early-filing penalties.
Unfortunately, if you’re hoping to start receiving checks at full retirement age in order to receive a larger monthly payment, there’s a good possibility this won’t work out.
Here’s why, if you’ve established 67 as your target date for starting Social Security payments, you might want to reconsider.
For one simple reason, claiming benefits at the age of 67 may not be feasible
There’s one major reason you might want to reconsider your intentions to file for Social Security at the age of 67: It’s possible that you’ll need to start your checks before you reach this age.
Many people wish to work until they are in their late 60s or early 70s. This desire is frequently fueled by financial concerns.
Working until 67 or beyond can help you boost Social Security, give you more time to invest for the future, and reduce the amount of time you need to rely on savings if you think you’ll have too little saved to support yourself.
The main issue is that there is a significant time gap between when people wish to retire and when they actually retire. According to the Employee Benefit Research Institute, the median retirement age for current retirees is 62 years old.
Despite the fact that the median expected retirement age among present workers is 65, many younger workers expect to retire even later.
According to the findings, many people would have to cease working sooner than they had intended. And if you’re one of the many people forced to retire before reaching the age of 67,
you’ll almost certainly need to file for Social Security benefits as soon as you stop receiving paychecks because you’ll be relying on it to make ends meet.
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Even if you hope for a later claim, be ready for an early Social Security claim
Unfortunately, while you may have the best of intentions when preparing to claim Social Security at the age of 67, you may find yourself in a difficult situation if your plan falls through.
If you develop a medical condition, have family obligations, or are unable to find a job that suits you as a senior, you may be forced to claim your benefits earlier than intended, and therefore before reaching full retirement age.
Though this happens, you don’t want to be caught off guard, so plan for retirement as if you’ll have to leave work early and receive a decreased Social Security income as a result of an early claim.
If you plan ahead, you’ll be able to save enough to supplement your benefits and sustain yourself for the duration of your retirement, even if it comes sooner than expected.