3 Reasons to Claim Social Security Immediately

Seniors are frequently admonished to exercise caution when applying for Social Security. This is because the amount of monthly income the program will give you for the rest of your life depends on when you file.

Hold off on filing for Social Security if you’re in your early or mid-60s and if you want to increase your monthly payout. But sometimes, waiting to file isn’t advantageous. It makes sense to file for benefits as soon as possible if any of these situations apply to you.

1. You lost your job and cannot make ends meet without going into debt.

Full retirement age (FRA) doesn’t begin until age 66, 67, or some period in between. Therefore, your payout will be lower if you apply for Social Security before that time. For example, if you’ve recently turned 62 (the earliest age to file for Social Security), you might wish to wait to file to get the most money possible from the program.

However, if you find yourself unemployed before reaching FRA and cannot pay your expenses out of savings alone, applying for Social Security as soon as possible will save you from having to run up credit card debt. Credit card debt would not only cost you a lot in interest but also lower your credit score, making it more difficult to accomplish things like acquiring a vehicle loan and finding housing.

2. A medical condition is found that could significantly reduce your lifespan.

An early Social Security application will reduce your monthly benefits but not necessarily your lifetime benefits. Also, it could be wise to apply for Social Security immediately if you have an illness that will likely decrease your lifespan. Consider a scenario where you would be eligible for a $1,600 monthly payment at an FRA of 67 but learn at age 62 that you might not survive as long as anticipated.

Immediately enrolling in Social Security in such a situation will lower your monthly payout to $1,120. But if you only live to be 72, filing early will result in a profit of more than $38,000.

3. You’re already 70 years old.

Your payments will increase if you file for Social Security after FRA, but only to a certain extent. Benefits grow by 8% annually if you wait to file a claim for the rest of your life.

However, after you hit 70, you cannot earn the delayed retirement credits that increase your lifetime benefits. In that case, it pays to file immediately so you can start receiving your compensation. If you put off claiming Social Security past the age of 70, you could wind up losing money rather than receiving it.

When there is a potential marital issue to take into account.
Making this choice depends on several factors, including your spouse’s income and state of health. The most common issue is when your spouse makes more money but has health problems. If your spouse earned more than you did, their Social Security benefit would be greater than yours.

If they have a shorter life expectancy and are in bad health, the larger benefit they receive will probably become your benefit after they pass away. This happens in the form of survivors’ benefits.

When your 35 highest-earning years are already behind you.
The 35 years you received the most pay are used to calculate your Social Security benefits. You may be able to increase your benefits if you work a few more years and put off taking benefits while you’re in your prime earning years.

The opportunity to increase your benefits with higher earning years won’t be lost on you, though, if you aren’t going to improve your average wages, like if you’re working part-time or have to retire early. You will, however, still receive a reduced benefit for not waiting until full retirement age.

When nobody else depends on your benefits.

The Social Security Administration can pay money to your surviving spouse, minor child, or disabled child based on the amount of your benefits in the event of your passing. For instance, based on their age, a surviving spouse may be eligible to receive between 71.5% and 100% of your benefit amount. Even after you’ve passed away, a disabled child might continue to receive 75% of your monthly payments.

You might desire to retire early if there is no one else who can qualify for benefits based on your record because that money is not needed. Consider taking Social Security benefits early and living life to the fullest if all other circumstances are ideal and you reach the minimum Social Security retirement age.

Waiting doesn’t always pay off.

Delaying Social Security benefits is a decision that frequently makes sense, but not always. Even if your original intentions indicated otherwise, there are some situations in which filing right away makes sense.

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