Tenor
Given the current economic climate, it’s important for almost all of us to make smart financial decisions in order to make our money last as long as possible. For people who are near or at retirement age, however, the incentive is probably much higher.
Fortunately, there are a few pretty simple moves these folks can make that will prevent them from losing thousands of dollars in Social Security benefits each year.
Wait till you’re 70
While the Social Security Administration recognizes the “full retirement age” at either 66 or 67 years old, many people take an earlier option as soon as they are eligible — usually at age 62. Doing this can cost you 25% each month, which could mean nearly $200,000 less over the course of your lifetime. On the other hand, waiting until you’re 70 means a 32% hike in monthly benefit checks.
Keep working
While many people are anxious to live a life of retirement at age 55 or even earlier, this can create a need to start collecting Social Security benefits as soon as possible. If you’re still physically and cognitively capable of holding down a job, however, there’s no reason to give up working.
Not only is it better for your financial future to stay in the workforce as long as possible, but it’s also good for your health.
Focus on your savings
While Social Security benefits are clearly a big part of most people’s retirement strategy, it shouldn’t be everything you’re relying on. No matter what stage of life you’re in right now, it’s not too late to begin spending less and saving more to ensure you have plenty of resources to meet your needs throughout your retirement years.
