“Do not rush your decision” is the most common advice regarding claiming your social security. According to The Motley Fool, claiming at the wrong time could permanently reduce your lifetime benefits. It is imperative to consider all options upon applying. The following list may help you in your decision when applying:
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Consider all options when applying for Social Security. (Photo: Investopedia)
1. Terminal Illness
If you have a terminal illness, applying as soon as possible is vital. If you wait too long, you may not be able to make a claim. However, if you have dependents, this advice would not be a good option for you.
Applying for social security would provide a larger benefit for your spouse and children. When you retire at the full retirement age (age 66 to 67) or die without claiming, the surviving dependents can receive up to 100% of your Social Security benefit. But if you claim early, you could decrease the maximum survivor benefits.
2. Your age is 70 or older
The eligibility for Social Security starts at 62 years old, but it is not mandatory to sign up immediately. You could grow your checks from 5/12 of 1% to 2/3 of 1% each month if you delay claiming the benefits. However, once you reach the age of 70, the checks won’t grow anymore.
3. You are struggling financially
The Social Security benefits can help you keep up paying your bills. The monthly payment will ensure you won’t fall behind your payments or result in debt.
As stated above, your lifetime benefit would be smaller if you claim early. But you can still increase your income by looking for a part-time or gig job.
If working is not viable for you, you might as well compromise by delaying your application for Social Security for several months.
The application process for Social Security can be done online or by contacting the Social Security Administration. You can also visit the local office of the agency.
