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Should you elect to take Social Security early?
The greatest benefit to electing early is that you get to enjoy receiving income early
and are certain to receive the maximum number of lifetime payments. Electing early can also
be a benefit if you have short life expectancy. One downside of electing early is you lock
yourself into permanently lower benefits for the rest of your life. At age 62, you would
receive a 25% lower benefit than claiming at full retirement age, which is 66 for most
baby boomers.
For every year you wait to elect your monthly benefit rises until you receive 100% of your
benefit at full retirement age. You can increase your benefit even further by delaying beyond
full retirement age. You get an 8% increase for every year you elect to delay beyond age
66 through age 70. That's a 32% increase for waiting four more years. If you live to into
your late 80's or early 90's, delaying your benefits to age 70 can mean tens of thousands
of dollars in extra lifetime benefits. One other thing you must consider before electing
early is the effect it will have on spousal survivor's benefits. Electing early will lock
your spouse permanently into lower survivor's benefits. And that can be serious a serious
drawback if you are the major wage earner.
To receive a personalized Social Security Maximization report which reveals the optimum
time for you to elect Social Security benefits is, call our office at 281 445 4869 for details.