In today’s times, more Americans are working well as the age of sixty and even seventy years of age. They do this in order to be more financially stable in retirement. Unfortunately, society is not placing as much importance on retirement planning as is necessary because of the difficulties making paychecks stretch far enough.
When it comes to the benefits you can receive from Social Security, financial experts advise people hold off on taking their Social Security benefits for as long as possible. While it can be tight, retirees are better off saving and learning to live below their means than taking Social Security benefits before the age of 70.
Benefits of Waiting for Benefits
While you are able to take Social Security as early as 62, for each year you postpone taking your benefits you will be entitled to 8% more. By waiting, you’ll be able to increase your income more for when you might really need it.
If you retire only to find you have to go back to work to keep up with living expenses, your Social Security benefits will be cut by $1 for each $2 more than the 2011 total of $14,160 in earnings. Once you reach the age of full retirement, the amount will go up to $37,680 so that only $1 for every $3 will be cut. The amount thresholds can increase each year depending on the cost of living. Retirees reaching the month of their full retirement age, they can earn any amount of income without interfering with their Social Security benefits.
There are many things to consider about retirement and pre-planning is really essential if you want to be stable financially when you stop working. If you are not sure what you want or need to do, consider consulting with a financial planner so you can hold off on taking Social Security benefits as long as possible.
