When you want to start receiving your monthly payments from your Social Security benefit is one of the most asked questions of seniors.
Most retirees take time before applying for Social Security benefits. This is normal as there are lots of things to consider when doing so. (Photo: MARCA)
Benefits of Delaying Social Security Benefits
Most retirees take time before applying for Social Security benefits. This is normal as there are lots of things to consider when doing so. You have to be aware of your personal wealth and financial needs to your health and life expectancy. Financial experts normally recommend waiting as long as possible before applying for bigger monthly payments. According to a post by MSN, this would be good but it will not be the same for everyone depending on the situation of the current economy.
As the country experiences high inflation and rising interest rates, most seniors are tempted to apply for Social Security early before reaching the full retirement age. Doing so can reduce your monthly payments but it gives you handy money to pay for bills especially if you’re struggling with high costs. The advantage you can get from applying now is that you’d get an added bonus of 8.7% cost-of-living adjustment (COLA) for 2023. This has been the largest COLA in more than 40 years.
Most retirees take time before applying for Social Security benefits. This is normal as there are lots of things to consider when doing so. (Photo: The US Sun)
Experts’ Opinions on Delaying Social Security Benefits
According to the author of “Social Security Made Simple” Mike Piper, real interest rates increase in the previous year suggests on seniors file early. He followed that it will not be the same for everybody as it would still be slightly advantageous for unmarried people to delay filing. Also, it would be good for high-earning married couples to delay filing all the way to 70. For lower-earning married couples, it would not be good to delay.
The author of “The Retirement Planning Guidebook” Wade Pfau gave a similar assessment. He expressed that while the case for delaying Social Security weakens as interest rates rise, it is still quite strong. Both authors said that interest rates are only one thing to consider. You must also put into consideration, the financial protection you get from Social Security in terms of your expected lifespan. The reason for this is that the longer you wait, the higher the monthly payment you get.
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