Wait! It’s Probably Worth It

December 26, 2008 by G. A. Harrison  
Filed under Featured Money, Money

Are you nearing that magic age of 62?  Are you one of the 50% planning on filing for Social Security as soon as you’re eligible?  If so, you may want to wait.  It’s probably worth it.

Taking your benefits at age 62 will cost you 25% of the benefit you would receive at age 66.  Let’s assume that you would be eligible for $1,000 per month when you reach 66.  By applying for your benefits at 62, you’ll only receive $750 per month.  If you’re like many of us, that extra $250 a month could come in handy.

Are there any benefits to postponing until later that age 66?  Absolutely!  Each year you work past age 66 earns you an additional 8%.  Using that same $1,000 per month benefit at age 66, you would receive $1,320 per month if you continued working until age 70.

With many of us living until our 80′s … and beyond, this could mean a significant increase in your income and your standard of living.  While everyone’s circumstances are different, this is something that you should at least consider.