top of page

Should You take Social Security at 62, 67 or 70?

62, 67, or 70?


For many retirees, Social Security income is an essential part of their financial strategy. But what’s the right time to file? Our article has some useful details on when to take Social Security benefits or what is the best retirement age for Social Security?


62 vs. 70 — a vast difference As many people likely know, the earliest you can file for Social Security is age 62, but if you do so, your monthly payment will likely be reduced because, as the article notes, most people aren’t eligible for their full benefit until they reach age 67. which is the average retirement age for most current American workers. The impact of claiming age on Social Security benefits can be significant.


If you wait until you’re 70, you’ll receive as much as 124% of your full retirement age benefit.


For many retirees, Social Security income is an essential part of their financial strategy. But what’s the right time to file? Our article has some useful details on when to take Social Security benefits or what is the best retirement age for Social Security?

Reasons to file at 62


The article cites recent data from the Social Security Administration that found that the average monthly payment for recipients who are 62, is about $1,274. That number is 70% of what that recipient would have received had they waited to file until their full retirement age..


Here are some of the common reasons for filing at 62:


  • You need money right now

  • You have health issues that could shorten your life expectancy, or you don’t anticipate living beyond your break-even point

  • You’re receiving early retirement from your employer and those benefits end when you turn 62

  • You have dependent children or an eligible spouse who may receive a monthly benefit up to one-half of your full retirement amount, but they can’t begin collecting those benefits until you begin receiving your own payment

  • You’re eligible for survivor benefits on someone else’s Social Security record and want to apply at 62 and then switch to your own Social Security benefit when at, or after, your full retirement age


But maybe 67 is better


The average monthly payment for someone who’s 67, according to the Social Security Administration, is about $1,844 a month.


In most cases, those filing for Social Security at 67 will receive 100% of the benefit they’ve earned.


Here are some of the main reasons many people wait until 67, which again, is the full retirement age for most current American workers:


  • You intend to continue working while receiving Social Security benefits because at this point, the money you earn on the job won’t affect your benefits because there’s no more annual earnings limit

  • You were able to wait until you were 67 but can’t afford to keep delaying Social Security income

  • You don’t anticipate living past your break-even point for collecting benefits at 67 rather than 70


The power of 70


Waiting until age 70 means you’ve reached the point when there’s no longer a financial benefit for waiting to file. Let me reiterate that waiting until you’re 70 means you’ll receive 124% of your full retirement age benefit.


The most recent Social Security Administration data tells us the average 70-year-old recipient is currently receiving about $1,963 a month.


Here’s a rundown of why you may want to wait until you’re 70 to file for Social Security:


  • You have other income sources and therefore don’t need Social Security income until you’re 70

  • You anticipate living a long time

  • You understand that your benefits don’t increase if you wait until after you’re 70 to file Working with a financial services professional can help you build a Social Security strategy that fits well into your broader goals and financial strategy.



SOURCES:

Recent Posts

See All

Comments


Get expert advice from a local and friendly company. 
CONTACT US
ADDRESS
OFFICE HOURS
PHONE
EMAIL

1804 W Union Ave, Suite 202, Tacoma, WA 98405

Monday to Friday

9:00 am - 5:00 pm

253-327-1177

You can also visit us; we'd love to meet you.
Penny Lane Financial - Trust and Expertise in Financial Services.

Important Disclosures

Equal Housing Lender:
Penny Lane Financial, LLC is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to contract), because all or part of the applicant's income derives from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act.

NMLS Consumer Access:
Our NMLS number is 1905686. WA – MB1905686 AZ – 1034711  You can verify our licensure status and find more information about our company at the NMLS Consumer Access website: https://www.nmlsconsumeraccess.org/ WA – MB1905686 AZ – 1034711

Terms and Conditions:
The loan terms and conditions provided by Penny Lane Financial, LLC are subject to change without notice. All loan approvals are subject to underwriting guidelines and credit approval. Not all applicants will qualify. Interest rates and annual percentage rates (APRs) are based on current market conditions and are subject to change.

Mortgage Loan Information:

  • Loan Types: We offer a variety of mortgage loan options, including fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, VA loans, and jumbo loans.

  • Interest Rates and APRs: The interest rates and APRs provided on our website are estimates and are subject to change based on market conditions and borrower qualifications. Please contact us for the most current rates.

  • Loan Fees and Costs: Mortgage loans may involve fees, including origination fees, appraisal fees, credit report fees, and other closing costs. These fees will be disclosed to you during the loan process.

Consumer Rights and Responsibilities:
As a borrower, you have the right to receive a Loan Estimate within three business days of submitting a complete loan application. This document provides important details about the loan terms, estimated costs, and other important information. You also have the right to receive a Closing Disclosure at least three business days before your loan closing, which outlines the final terms and costs of your loan.

Homeownership Counseling:
If you are experiencing financial difficulties or have questions about your mortgage loan, you may seek assistance from a HUD-approved housing counseling agency. For a list of HUD-approved counseling agencies, visit the HUD website at https://www.hud.gov/program_offices/housing/nationally_hud_approved_housing_counseling_agenciesdirectory

 

Insurance License:
Penny Lane Financial, LLC holds life, disability, property and casualty insurance licenses in WA and AZ, NPN #17702278. We are committed to providing comprehensive financial services, including insurance products, to meet the diverse needs of our clients. Regulated by Washington State Insurance Commissioner at https://www.insurance.wa.gov/

Privacy Policy:
We are committed to protecting your privacy and ensuring the security of your personal information. For details on how we collect, use, and safeguard your information, please review our privacy policy here.

Contact Us:
If you have any questions or need further assistance, please do not hesitate to contact us at 253-327-1177 or email to vip@pennylanefinancial.com.

Penny Lane Washington

Check us out  

Penny Lane Financial NMLS #1905686 WA State, NMLS #1034711 AZ State

 

  • Instagram
  • Facebook
  • LinkedIn

NMLS Consumer Access - click here

EQUAL HOUSING LENDER

 

All Rights Reserved © 2017 - 2024 Penny Lane Financial LLC .

bottom of page