One of the greatest things about Social Security is that you're not tied down to one specific filing age. Rather, you get a range of choices when it comes to signing up for benefits.
The earliest age you can claim Social Security is age 62. But you should know that you're not entitled to your full monthly benefit based on your earnings history until you reach full retirement age (FRA), which kicks in at 66, 67, or somewhere in the middle, depending on your year of birth.
You also have the option to delay your Social Security filing past FRA and snag a higher monthly benefit for life. For each year you hold off, up until age 70, your benefits get an 8% boost.
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It's for this reason that filing at age 70 may hold some appeal. And for some beneficiaries, waiting to file is a very wise choice. But you may want to claim Social Security well ahead of age 70 if this particular scenario applies to you.
When you've earned the right to slash your benefits -- but collect them sooner
Many of us like to imagine ourselves having plenty of energy to enjoy retirement well into our 70s and beyond. But let's face it -- you're more likely to be in good enough health to travel extensively and pursue different hobbies in your early 60s than in your late 60s or later. And so you may be motivated to claim Social Security early so you can use that money to fulfill the retirement goals you've set for yourself, like scuba diving off the coast of an exotic island or trekking a well-known peak overseas.
Now the one thing that may be holding you back from signing up for Social Security early is seeing your benefits take a permanent hit. But if you've saved really well for retirement, you may be in a solid enough financial position where a reduced benefit won't hurt you -- so if getting your hands on those benefits sooner makes it possible to do the things you've always dreamed of, then it pays to claim Social Security early rather than wait.
Of course, if you're sitting on little to no money in your IRA or 401(k) plan, then you may need to take a different approach to claiming benefits -- especially since at that point, you'll likely become pretty reliant on Social Security to cover your bills throughout retirement. But if you're approaching your early 60s with a $3 million nest egg, then you shouldn't hesitate to claim benefits when you want to -- even if that means losing out on what could be a sizable boost.
The choice is yours
If you have concerns about your ability to cover your expenses in retirement, then delaying your Social Security filing is a guaranteed way to generate more monthly income. But if you've saved really well for that milestone, then you may want to take the opportunity to snag your benefits earlier and use them to fulfill your goals.
After a lifetime of hard work, you deserve to take your dream vacation or spend your early 60s living it up before your health takes a different turn. And claiming Social Security well before age 70 could be your ticket to doing just that.
