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3 Reasons to Wait Until 70 to Start Taking Your Social Security Benefits

2 6 137
22.09.2021

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When it comes to claiming Social Security retirement benefits, you may want to consider waiting to start benefits when you’re 70.

That means not starting benefits when you’re 62 (which is still popular with many), nor even full retirement age (which is somewhere between 66 and 67 for most Baby Boomers).

I know that starting benefits at age 70 might be a tough thing to reconcile with — but it doesn’t mean that you have to work until you’re 70.

Here are three reasons why delaying taking your Social Security benefit to age 70 is a decision you may want to consider:

1 of 4

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Claiming Social Security before you reach full retirement age (FRA) will result in a reduction in benefits — as much as 25% to 30% less than you would have received if you had waited. That reduction is permanent.

Instead, if you wait to take your benefits until after your FRA, Social Security will add an 8% delayed retirement credit to your eventual monthly payout each year you hold off, up until age 70.

That’s a guaranteed return of 8% per year of deferral after your FRA, which could be more than you might receive with any other fixed products right now. It’s definitely more than the cost of living adjustments (COLAs) that Social Security beneficiaries have been getting for the past decade, which have averaged about 1.5% a year.

Those COLA increases are not always enough to keep up with true inflation. And, when there is a........

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