While claiming your Social Security benefits early will lock you into a lower monthly benefit for life, there are actually some situations where you’ll want to claim your benefits early. We’ll cover three of them below. Be sure to schedule a consultation with your financial planner in NJ for more detailed information based on your individual circumstances.
Reason #1. You’re worried you won’t live a long life.
Life is fragile, and none of us know how long we’ll live. But if you believe you won’t live a long life based on your current health or a chronic illness, it could be worth it to take your benefits early. You’ll break even if you live an average lifespan, but if you don’t, you’ll lose money. Claiming your benefits early allows you to come out ahead if you do end up living a shorter life.
Reason #2. You are ready to retire and need the money.
Are you ready to quit working but need a paycheck? Unfortunately, many Americans have jobs that place a great deal of stress on their mental and physical health. If you need to escape your current job situation, filing for benefits at 62 may be your ticket out. From here, you’ll have the flexibility to find a better job or transition to part-time work.
Reason #3. You have enough savings to fall back on.
If you’re one of the lucky ones who has enough money saved for retirement, taking your Social Security benefits now might make sense. It depends on how you look at things.
On one hand, you may not need the money right now so it’s smart to wait. But on the other hand, you might be afraid that Social Security benefits will change - the system is in trouble after all.
Claiming your benefits early gives you more income to live a better life in your 60s. You’ll take home less over your lifetime, but this may not be a big deal if you have enough saved for retirement.
Retirement Financial Services in New Jersey
Each person’s circumstances are unique, so there is no right solution for everyone. Knowing when and how to apply for Social Security in New Jersey can help you make the best decisions. Contact Leonard Financial Solutions for a detailed look at your financial picture and the ideal time to collect your benefits.