"For one thing, a lot of people don't manage to save very much for retirement. And without a sizable nest egg, those benefits become their primary means of paying for expenses. Also, Social Security is guaranteed to last for life. The same can't be said for anyone's savings. That's why it's so important to file for Social Security strategically. Although your wage history will help determine what monthly benefit you get, your filing age will play a role as well."
"Let's assume you'll be pretty reliant on Social Security for retirement income. In that case, you should know that there's a huge difference between filing early, on time, or late. The earliest age you can claim Social Security is 62. Filing on time, meanwhile, means signing up for benefits at full retirement age (FRA), which is 67 if you were born in 1960 or later. You can also delay your Social Security claim past FRA for boosted benefits up until your 70th birthday."
Many retirees depend heavily on Social Security because personal retirement savings are often insufficient and benefits are guaranteed for life. Filing age significantly alters monthly benefits, with the earliest claim at 62, full retirement age (FRA) at 67 for those born 1960 or later, and delayed claiming up to age 70 increasing benefits. Example: a $2,000 FRA benefit becomes $1,400 at 62 and $2,480 at 70. There are hundreds of possible filing calculation combinations, and claiming at 70 is not universally optimal because shorter lifespans can negate the advantage of larger monthly payments.
Read at 24/7 Wall St.
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