According to a report out of Boston College, about 90 percent of Americans begin collecting social security at or before their full retirement age. The most popular age is the earliest possible 62. But is this a good idea?
You've put it away from your whole working life and now it's time to cash in. We're talking about social security. But when should you collect it? You can take benefits as early as age 62 or wait until 70.
Each year you go without enrolling allows your payout to grow by about eight percent up until age 70. But there are some factors to keep in mind. First, your financial needs. If you can't make it without your social security check, you'll probably have to take it at 62. Your life expectancy also matters.
"With today people living into their 80's 90's and even beyond 100, you want to make sure you don't run out of money." Said Celine J. Pastore, CRPC, RFC from SimplePath Retirement, LLC.
But if you're in poor health, you might consider taking your benefits sooner. If you have a spouse who's covered, you may decide that one of you takes it early while the other waits. The best plan might be to talk to an expert, so you can maximize your benefits.
"That's why I think it's important that you work with a financial professional when you're making these decisions," Pastore said.
Most financial advisors say you will to need 75 percent to 80 percent of your pre-retirement income to maintain your standard of living. Social security can't come close to this so we all need to start saving now.
Contributor(s) to this news report include: Julie Marks, Producer; Angela Clooney, Videographer and Editor.
Simple Solutions: When is it the right time to collect Social Security?