3 Social Security Filing Choices That Could Work Wonders for You


It is best to have an income outside of Social Security available to you once you retire. While your monthly benefits may cover a large portion of your bills, they probably won’t cover your bills completely.

Still, you can end up being heavily dependent on Social Security if you stop working. So it’s important to choose the right age to apply for benefits as that will affect the amount you get each month. Here are three filing options to look at that may be right for you.

1. Submit early and put your benefits to work

Many seniors choose to sign up for Social Security at age 62, which is the earliest age you can claim benefits. Filing at age 62 has the obvious benefit of getting your money back sooner. But it also means you lock in a lower monthly benefit that you generally commit for the rest of your life.

Image source: Getty Images.

However, that does not necessarily mean that you will lose financially. If you file for Social Security at age 62, but invest your money instead of spending it, you may generate even more income — enough to support yourself in retirement.

And when we say “invest your money”, stocks are not your only option. You could invest in the small business you’ve always wanted to run. If it is successful, it can give you not only satisfaction in retirement but also a lot of income.

Likewise, you can invest in skills that will help you earn money after retirement. Let’s say you’ve been a teacher all your life and are now only interested in a remote job as a retiree. Learning how to become a graphic or web designer will help you earn money from home at your convenience.

2. Postpone your application for a higher monthly payday

You are entitled to your full monthly Social Security benefits based on your income history at full retirement age (FRA), which starts at 66, 67, or anywhere in between, depending on when you were born. But for every month you delay your application past FRA to 70, your monthly benefit gets a nice little boost.

Postponing your claim for several months may not lead to a substantially higher benefit. But if your FRA is 67 and you delay your application until age 70, you increase your monthly benefit by 24% – for life. That could mean that your benefits could cover a large portion of your senior living expenses.

3. Submit on time and share the difference

You might be shocked at the idea of ​​claiming Social Security early and locking in a lower monthly benefit. But you also might not want to wait until age 70 to get your money — because you can’t afford to retire until those benefits come in.

If so, filing on time – that is to FRA – is a very reasonable choice. While you are not increasing your monthly benefit, you are not decreasing it either. And if you manage your income carefully and spend it carefully, your monthly allowance at FRA may be enough.

What is the right choice?

Deciding at what age you can claim Social Security is difficult – there is no doubt about it. It is therefore best to weigh the pros and cons of different archiving strategies and see where you come from.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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