Many people who file for Social Security truly need the money to make ends meet because they have no other income. And some recipients have other income sources at their disposal but still rely pretty heavily on Social Security to pay their expenses.
But what if you're in a different situation? It may be that you've saved so well for retirement and invested in such a savvy manner that you're now sitting on millions of dollars, to the point where any income you get from Social Security is apt to be pretty negligible.
In that case, you might assume that it doesn't matter when you file for benefits. But actually, it still pays to put some thought into that decision.
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Might as well make the most of your benefits
Some people rush to claim Social Security early so they can retire early. But if you have millions of dollars to your name by the time you're first eligible for Social Security at age 62, claiming benefits may not spell the difference between being able to retire or not.
Similarly, some people push themselves to wait for full retirement age to claim Social Security because they can't afford a reduction in benefits. Others delay their filings past full retirement age to make up for a lack of savings.
If you have tons of money at your disposal in retirement, your Social Security filing decision shouldn't be all that stressful. But it's still a good idea to think about the purpose you want those benefits to serve.
Maybe your goal in collecting Social Security is to give that money to charity. Or maybe you'd like to gift it to your grandchildren or hand it over to your adult children who may be struggling to juggle their bills. If that's the case, then filing at or after full retirement age could make sense, since that will leave you with more money to give to your important causes or individuals.
On the other hand, you may have a grandchild who's set to start college soon and needs to take out loans. Claiming Social Security early and giving your grandchild that money might prevent them from having to take on debt, so that's a situation where an early filing could make sense.
Don't feel bad about taking the money
Being in a position where you don't actually need the money you get from Social Security is a very good thing. But it's still a smart idea to consider your filing choices, rather than claim benefits at random. Even if that money doesn't end up doing much for you, it might do a lot for a person or organization you care about.
If you have plenty of your own money to give to charity and don't have family you're trying to support, you may just decide to forgo Social Security altogether. That's certainly your right, since no one is going to force you to sign up.
But remember, the whole reason you're eligible for Social Security is that you spent your career paying into the program. So don't feel guilty about collecting your money, even if you truly don't need it.
