Most people in Chicago become eligible for Social Security around 62 at the earliest, so should you take your Social Security at 62? It can be tempting, but there are some compelling reasons to wait it out just a few years longer. Get to know the ins and outs of the system with the Medicare and Social Security retirement advisors at IntentGen.
Why Should I Bother Waiting for Social Security?
Most people are eligible for Social Security at 62, but your full retirement age (FRA) is 67. This is important because your annual cost-of-living adjustment (COLA) is based on your benefit. If you choose to take Social Security benefits at 62, you’ll not only have reduced benefits to start but also a lower COLA benefit. Given high inflation, this can be more financially significant than you might expect.
What Percentage Does Social Security Increase Each Year After 62?
Every year that you delay your benefits past your full retirement age, you get an 8% increase in benefits. Let’s say you choose to delay benefits until you are 70. You could get a 24% higher monthly benefit compared to someone who retires earlier! That translates to around $1,400 at 62 years of age vs. $2,480 at 70 years of age.
Who Should Take Social Security Earlier?
Sure, you could benefit financially from delaying your Social Security. However, this is only a good idea for those who have sufficient savings and income in the meantime. Others in Arlington Heights need access to the payments earlier to help pay for bills, even with reduced benefits. Also, remember that you are eligible for Social Security benefits at age 62, but you don’t qualify for Medicare until the age of 65. That means you’ll likely need to pay for private insurance until then.
Explore Your Social Security Options at IntentGen
So, should you take Social Security at 62? The answer is up to you, but the team at IntentGen is here to help you make the best retirement choices for your wants and needs. Contact our Medicare and Social Security retirement advisors for personalized advice that you can trust, and chat in person at our Naperville office.