Dangers of Taking Social Security EarlyBy Kenton Koszdin Law Office on December 12, 2015 | In Social Security Disability
It is tempting to retire and accept your Social Security benefits as soon as possible, but that’s not always a good idea. In fact, experts now say that there are great benefits in waiting a few additional years.
You can begin receiving Social Security benefits once you hit the age of 62. But, the amount you receive will be reduced permanently for every year you take benefits before you hit the age 66. In other words, you will receive more benefits if you are able to postpone accepting your Social Security benefits.
Retirees who accept Social Security benefits early are short changing themselves quite a bit of money. According to the National Academy for Social Insurance, more than 66 percent of Social Security beneficiaries in California receive reduced payments because they took their benefits early.
It’s important to remember that waiting is not always an option. Many retirees need benefits early because they are unable to find a job or because their health condition prevents them from working. Others have inadequate savings and need their benefits as soon as possible. For them, it may be in their best interest to take their Social Security benefits when they become available. For those who can wait, it makes more financial sense to wait.
There are even more benefits for those who can wait until the age of 70. Retirees who can wait until they hit the age of 70 to accept benefits will receive way more than they would have if they started receiving benefits at age 62. Each year you wait will increase your monthly benefits by about 8 percent. That increase will last for as long as you live.
For those worried that Social Security will run out of money so they might as well take benefits now, California Social Security is already fully funded for the next 20 years.
If you have more questions about your Social Security benefits, do not hesitate to contact an experienced Los Angeles Social Security Disability attorney who will look out for your best interests.
Kenton Koszdin Law Office can answer any questions or concerns you might have. Contact us at (800) 438-7734.