The answer to this question depends on several factors. Generally speaking, waiting until age 70 may be the best option for many people as it allows them to maximize their retirement benefits. Delaying Social Security payments until 70 provides a higher benefit for the rest of your life, can be beneficial for married couples, and may make financial sense for those in good health.
When you delay your retirement benefits until 70, your Social Security payment rate increases 8 percent for each year you wait beyond your full retirement age. While this might not seem like a lot, it can make a big difference over the course of your retirement.
For example, if your full benefit rate is $1,500 per month, waiting until age 70 increases your rate to $2,040 per month, which is a great boost to your budget.
For married couples, delaying retirement benefits to age 70 can also provide a boost to one spouse’s retirement benefits. If one spouse passes away, the surviving spouse may be eligible for the higher Social Security payments of the deceased spouse if they waited until age 70 to collect benefits.
Additionally, waiting until 70 might make financial sense if you’re in good health and expect to live until at least your late 70s. Waiting until age 70 increases your payments now, which should be taken into account when deciding if it’s best for you.
Ultimately, the decision to take Social Security at 66 or wait until 70 is a personal one. Consider all of the factors involved and carefully weigh the pros and cons.
Is there any reason not to take Social Security at 70?
So there are both pros and cons to waiting until age 70 to start receiving benefits.
The biggest advantage of waiting until you’re 70 to start taking Social Security is that you will receive the highest possible benefit amount. Your Social Security benefit is calculated in part by multiplying your greatest 35 years of covered wages by a certain percentage.
The longer you wait, the higher that calculation will be, so if you wait until you are 70, your benefit will be 32 percent higher than it would have been if you began taking benefits at 62, the earliest age you can start.
On the other hand, if you wait until age 70 and you pass away soon thereafter, you will leave a much smaller lifelong benefit for your spouse or survivors. Additionally, if you’re in good health and could have been taking Social Security for years, you may have missed out on hundreds of thousands of dollars in benefits.
Ultimately, it is important to consider all of your options carefully and consult a financial planner or Social Security expert if you have any questions before making a decision.
What happens if you don’t collect Social Security at 70?
If you don’t collect Social Security at age 70, you will be able to collect delayed retirement credits if you wait to collect until after that age. Delayed retirement credits are additional benefits for waiting to collect Social Security.
The amount of the credit is 8% of the basic benefits for every year after full retirement age (FRA) up until age 70. For example, if your FRA is 66 you will receive a 24% increase in benefits if you wait until 70 to collect.
The increase in benefit amount is permanent, even if you start collecting Social Security prior to 70.
In addition, choosing to wait to receive your Social Security until after age 70 will not affect the amount of survivor benefits, if applicable.
There may also be some tax benefits for waiting until after 70, although this depends on your individual situation.
Ultimately, waiting to collect Social Security until age 70 or after can be beneficial in many ways if the individual is able to do so. It should be carefully discussed with a knowledgeable financial planner or Social Security professional if you have questions or would like to know more.
What is the average Social Security check at age 70?
The average Social Security check at age 70 varies depending on various factors, such as the age at which a person began receiving benefits. Generally speaking, however, the average Social Security benefit for someone who reaches the age of 70 is around $1,523 per month, or roughly $18,280 per year.
Furthermore, that amount may increase if the recipient has delayed their benefit past their full retirement age.
It is important to note that Social Security benefits are adjusted annually based on the cost of living, so the amount received can change from year to year. Additionally, many factors can influence the amount of money a person receives, such as earnings history and marital status.
Taking these variables into account, the amount received by a person at age 70 can be significantly more or less than the average amount discussed in this answer.
Should I claim Social Security at 70 or take it earlier and invest the money?
The decision whether, and when, to start claiming Social Security benefits is an important one, and one that impacts you financially for the remainder of your life. Ultimately, the decision you make is a personal one and should be based on a variety of factors, such as your life expectancy, your family history, and your overall financial situation.
Generally speaking, the longer you can wait to claim Social Security benefits, the higher the payment you will receive. Your Social Security benefits will increase by 8 percent for each year after your Full Retirement Age that you wait to claim them, up until age 70 when the maximum amount is reached.
However, if you decide to take Social Security benefits at an earlier age and invest the money, you may be able to generate higher returns than the 8 percent annual increase you’d receive by waiting to claim them at age 70.
Doing so could be beneficial if you’re in good health and have a more aggressive investment strategy that you feel will be able to beat the 8 percent return.
Though you’ll need to do your own research and crunch your own numbers in order to make the best decision for you, understand that taking Social Security early does come with a variety of risks. For instance, if you experience a significant market downturn and don’t recoup your losses, you could be left with a reduced income for the remainder of your life.
In order to make a well-informed decision, it’s important to talk with a financial advisor and consider the pros and cons of claiming Social Security early and investing the money, versus waiting until age 70 to claim the maximum amount.
What percentage of retirees wait until 70 for Social Security?
Though the retirement age for Social Security is officially listed as starting at age 62, the age at which most people start to draw Social Security benefits is 62. According to the Social Security Administration, in 2019, about 36.
4% of retirees waited until age 70 or older to start drawing their benefits. This is up significantly from 2012, when only 25. 6% of retirees waited until age 70. This increase, at least in part, is due to the fact that when retirees wait until the maximum age of 70, they receive a larger benefit.
Additionally, according to a 2019 survey conducted by the Insured Retirement Institute, 39. 2% of people plan to delay Social Security until age 70 in order to maximize the amount they receive. Therefore, while just over one-third of retirees are currently waiting to receive benefits until age 70, over one-third of pre-retirees plan to delay claiming benefits until age 70, showing that significantly more retirees may wait for Social Security until that age in the future.
How much does Social Security increase from age 67 to 70?
The Social Security benefit increase is calculated based on when you start drawing benefits. For people born after 1943, benefits increase 8% each year you delay receiving them between age 62 (the earliest age you can begin receiving Social Security benefits) and age 70 (the latest you can begin).
This means that your benefit could increase anywhere from 24-32% from age 67 to age 70, depending on when you start receiving Social Security. The percentage increase is actually 8% per year, no matter how many years you delay benefits beyond age 67, but the amount of the benefit increase will get smaller the closer you get to age 70.
As a general rule of thumb, your benefit will increase about 25% if you start payments at age 70, compared to what you would have received at age 67.
What’s the percentage difference between 62 years old and 70 years old on your Social Security?
The exact percentage difference between 62 years old and 70 years old on Social Security depends on when you began collecting benefits. This is because the Social Security Administration (SSA) uses a formula to calculate a person’s initial benefit amount, which is dependent on the worker’s earnings in the top 35 years of their career and the age when they begin collecting the benefit.
If you are 66 years old or older and began collecting Social Security benefits prior to age 66, your benefit amount is reduced. The Social Security benefit is reduced by 6. 67% for each year before age 66, or a total of 20% before age 70.
Conversely, if you wait to take your Social Security until after age 70, your benefit is increased by 8% for every year after age 66, or a total of 32%.
Therefore, the percentage difference between 62 and 70 years old on Social Security will be either a 20% reduction or a 32% increase, depending on when the person began collecting benefits.
What percentage of Social Security will I get at 62?
The exact percentage of Social Security benefits that you receive at age 62 depends on your earnings record and when you were born. Generally, you are eligible to receive reduced benefits at age 62, with your full retirement age (FRA) being 66 or 67, depending on your birth year.
If you were born between 1943 and 1954, your FRA is 66 and you’ll be eligible to receive approximately 70% of the full Social Security retirement benefit if you start taking it at 62.
If you were born in 1960 or later, your FRA is 67 and you’ll only be eligible to receive about 75-80% of your full benefit if you start taking it at 62.
So, for the average person, starting Social Security at age 62 will result in about a 25 – 30% reduction in their benefit compared to waiting until their FRA.
Can you collect Social Security at 70 and still work full time?
Yes, you can collect Social Security at 70 and still work full time. You can apply to receive Social Security benefits at age 70. The Social Security Administration allows employees to begin receiving their full retirement benefits at any time after they reach age 62.
You may begin working full-time after you start receiving your Social Security benefits. However, it is important to note that your Social Security benefits may be reduced if you earn more than the Substantial Earnings Test limit in the year you begin collecting Social Security.
Additionally, if you are under full retirement age and receive benefits for more than one year, the Social Security Administration will reduce the number of payments you receive by the amount of earnings received over the Internal Revenue Service’s annual Limit.
This limit is based on your age and changes each year. You should also be aware that if you choose to return to work after you begin collecting benefits, your Medicare premiums may be affected.
For more detailed information, it is important to contact the Social Security Administration to discuss your individual situation.
How much Social Security can a couple get?
The amount of Social Security that a couple can get depends on a variety of factors, including their incomes, ages, and marital status. Generally, the maximum amount of Social Security benefits a couple can receive is equal to the highest benefit amount received by either of the individuals in the couple.
For example, if one spouse has a benefit of $1000 per month and the other has $500 per month, the couple will receive $1000 per month. In addition to the higher benefit amount, the couple may also receive an additional spousal benefit, depending on the marital status and income levels of the two spouses.
The exact amount of Social Security benefits that a couple can receive can vary significantly, depending on their particular situation. For the most accurate estimate of what a couple can expect to receive, it is best to contact the Social Security Administration.
Can I collect spousal benefits and wait until I am 70 to collect my own Social Security?
Yes, you can collect spousal benefits and wait until age 70 to collect your own Social Security. If you are eligible for both a retirement benefit based on your own earnings record, and a spousal benefit based on your spouse’s (or former spouse’s) earnings record, you may decide which benefit to take first.
Your retirement benefit amount increases by roughly 7-8% for each year that you delay claiming your own Social Security, up to age 70. For example, if you are eligible for a benefit amount of $1,000 per month at full retirement age but delay claiming until age 70, your benefit could be as much as $1,320 per month.
On the other hand, if you claim your own retirement benefit before full retirement age, or claim early Social Security spousal benefits, your benefit amount could be permanently reduced. As a result, claiming spousal benefits prior to your full retirement age and then switching to your own retirement benefit at age 70 could potentially result in a higher overall benefit.
To start collecting spousal benefits, you have to have reached full retirement age and have been married for at least one year. If your marriage has ended, you can receive spousal benefits based on your former spouse’s earnings record if your marriage lasted for at least 10 years and you remain unmarried.
If you were born on or before January 1, 1954, you can file a “restricted application” for spousal benefits when you reach full retirement age, allowing you to collect spousal benefits while delaying filing for your own retirement benefit up to age 70.
If you were born after January 1, 1954, you can no longer file a restricted application.
It’s important to understand that even if you delay filing for your own retirement benefit until you are 70 and claim spousal benefits in the meantime, you may be subject to the Social Security earnings limit.
If you have not yet reached full retirement age, you cannot earn more than $18,240 per year while receiving Social Security benefits.
Ultimately, claiming spousal benefits and waiting until age 70 to collect your own Social Security benefit can potentially maximize your overall retirement benefit, but it’s a decision that should be made only after considering your circumstances and understanding the financial implications.
It may be beneficial to speak to a financial advisor who can help you make the best choice for your financial situation.
Can I collect my deceased spouse’s Social Security and my own at the same time?
Yes, in certain cases, you may be able to collect your own Social Security benefits and your deceased spouse’s Social Security benefits at the same time. Generally, the total amount you receive cannot exceed what you would get if you only collected your Surviving Spouse benefit.
To be eligible to collect your deceased spouse’s Social Security, you must meet certain criteria. Generally, you must be at least 60 years of age, you must be unmarried, and you must be a legal resident of the United States.
Additionally, you must have been married to your deceased spouse for at least nine months (unless the death was accidental or related to service in the military).
If you meet the criteria, you may be eligible to get up to 100% of your deceased spouse’s Social Security benefit, but the amount you actually get depends on your age. You can collect the benefits as early as age 60, but you will receive a reduced amount.
If you wait until your Full Retirement Age or later, you will get the full amount.
When applying for your deceased spouse’s Social Security, you also need to provide information about your own earnings history and benefits. If you are also eligible to collect your own Social Security, then the total amount you receive will be reduced if it is greater than your surviving spouse’s benefit.
It’s important to note that the Social Security Administration’s rules and regulations are complicated and are subject to change. If you have specific questions or concerns, be sure to contact the Social Security Administration directly.
When a husband dies does the wife get his Social Security?
Yes, a wife may be eligible to receive Social Security benefits based on her deceased husband’s earnings record. To qualify for these benefits, the wife must be either: the divorced widow of a deceased insured worker; the widow of a deceased insured worker who was married to their late spouse for at least nine months before their death; or the widow of a worker who died before January 1, 1956, and was married for at least nine months.
If the widow’s husband died after attaining age sixty, she may qualify for a monthly survivor benefit regardless of the length of their marriage. Generally, the Social Security widow’s benefits are equal to the benefits that the deceased husband would have received if still alive.