4 Reasons I'm Claiming Social Security at 65 -- and Why It Makes Sense for Me
My plan may not be right for everyone, but it may help you build your own.
Overview
When should you start collecting Social Security benefits? It's a frequently asked question because there's no universally correct answer. You can start them at any time between 62 and 70, but each choice has its pros and cons. The earlier you claim, the smaller your payment, but the longer you collect. At the other end of the spectrum, claiming later in life increases the size of your payment, but you're going to be receiving fewer of them in your lifetime.
After giving it careful thought, I'm pretty sure I've decided that filing at the in-between age of 65 is the best choice for me. Here's a closer look at the four very interrelated reasons why, which I'm willing to bet apply to plenty of other investors, too.
Details
The trade-off in payments for claiming Social Security benefits before our intended full retirement age (FRA) isn't insignificant. Filing at age 62 reduces your monthly payment to only 70% of what it would have been had you waited until your FRA (67 as of this year). Conversely, beginning benefits at the maximum age of 70 raises them to 24% above the payment you'd receive when initiating at your full retirement age.
Source
Originally published at www.fool.com.