Planning to Claim Social Security at 62? Here Are 3 Critical Questions to Ask Yourself First

Résumé détaillé

Claiming Social Security at 62 can be tempting because it means getting your money as early as possible. But it also means accepting smaller checks. So before you move forward…

When you sit down to plan for retirement, one of the things you'll need to do is figure out when to claim Social Security. And the good news is that you have plenty of options.

Once you turn 62, you can claim benefits at any time. If you want to ensure that those benefits are not reduced, you'll have to wait until full retirement age to file, which is 67 if you were born in 1960 or later.

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You can also delay your Social Security claim past full retirement age for boosted benefits. Each year you hold off until your 70th birthday gives your benefits a guaranteed 8% increase for life.

You might assume that once you retire, your annual income needs will drop substantially. But once you sit down to create a budget, you may realize that's not actually the case.

While certain costs of yours may drop in retirement due to not having to go to an office on a regular basis, many of your core expenses are likely to stay the same. Some, like healthcare and entertainment, might even increase.

It's important to get a solid handle on your estimated spending to see whether you can afford to take a hit on your Social Security benefits by filing early. And don't forget to account for one-off expenses, like home repairs that might arise out of the blue or annual car insurance payments. A detailed budget could help you arrive at the right choice.

Ideally, Social Security won't be your only available source of income in retirement. Once you've identified your annual spending needs, see how much income you can expect outside of those benefits.

Let's say you expect to safely withdraw $30,000 a year from your retirement savings and anticipate another $5,000 a year in interest income.

Début de l'article, extrait de Yahoo Finance. Pour lire la suite, ouvrez l'article chez le média.