If you qualify for Social Security, you can sign up and start receiving benefits at age 62. However, until Full Retirement Age (FRA), you are not entitled to the full monthly benefit based on your individual earnings history. arrival. If you were born after 1960, your age will be 67 years.
Retirement planning:Why do Americans take Social Security early and even save money for retirement?
Those who rushed to claim Social Security as soon as possible may regret that decision now that they realize how little their monthly paycheck is. But don’t stress yet.There teeth This is a way to get higher monthly benefits even after you apply. You need to act now.
When you get a second chance
One of the lesser-known rules of Social Security is that claimants have a do-over option once in a lifetime to withdraw their application for benefits and re-enroll in the future. This option is useful if you applied for benefits too early and regret that your benefits were reduced as a result.
However, there are some related rules that you should be aware of. First, to officially cancel your application for Social Security, you must withdraw your application for benefits, which he must do within one year. Next, you’ll need to pay back all of the benefits you received from Social Security before you can reapply with a clean slate. And it may not be easy.
However, one thing you can do if you want to take advantage of the lifelong singleness do-over is to put your retirement savings toward paying off your Social Security benefits, if they’ve already been spent. Doing so may lock in some investment losses, depending on the asset and market. But you’ll also be setting yourself up for what could be a larger source of Social Security income over your lifetime. With a guaranteed monthly benefit, it may be well worth drawing down your savings or locking in losses on your investments.
Try to make the right decision the first time
While it’s obviously possible to cancel your Social Security claim after claiming benefits, a more ideal scenario is to simply sign up at the right age to begin with. Therefore, before submitting your application, ask yourself the following questions:
- Do I need benefits immediately?
- Do you know what benefits you will receive each month if you apply now?
- Have I talked to my spouse or partner about my Social Security application?
- Have you evaluated your savings to see how much you’re likely to rely on Social Security in retirement?
If you answer all of these questions, you may not have to take advantage of the Social Security do-over option. That’s not a bad thing at all.
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