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August 10th, 2015 :

Posted August 10th, 2015 under Retirement Income

Claim Social Security Now or Later?

Tags: social security, delayed benefits, claiming strategies

Claim Social Security Now or Later?

There are an increasing number of financial advisors, and financial publications, touting the benefits of delaying Social Security benefits in order to receive a larger monthly income. While the benefit may be larger, waiting to collect at an older age is not always the best option.

A CNBC article (When to file for Social Security retirement benefits early), reports that "Waiting is a pretty solid strategy. After all, claiming Social Security before full retirement age locks in your monthly benefit at a reduced level; for those claiming at age 62, it's as much as 30 percent lower." However, that should not be considered as one-size-fits-all advice.

Health concerns may cause some people to anticipate shorter longevity. This could be a reason to receive benefits earlier, rather than later. Of course, the decision is also affected by how many assets you have accumulated at retirement age.

Although delaying retirement benefits may ultimately be the correct choice for some, it is not for others. It is best to consult with a financial advisor who understands the ins and outs of Social Security claiming strategies.