Social Security Claims After This Age Are Always a Huge Mistake. Timing your Social Security application is a crucial decision with various factors at play. While some opt for early applications at 62, aiming to claim as many checks as possible, others delay until they are older to receive larger benefits. In this complex landscape, there exists one claiming decision that is universally a mistake, regardless of individual circumstances. This article explores the repercussions of this decision and outlines potential remedies
[irp]Why Delaying Social Security is Often Advised
Delaying Social Security retirement benefits typically results in larger monthly checks. The degree of increase depends on factors such as age at the time of application and full retirement age (FRA), which ranges between 66 and 67 for today workers. The following table illustrates the impact on benefits for early and delayed claims:
| SOCIAL SECURITY CHECKS: | FULL RETIREMENT AGE OF 66 | FULL RETIREMENT AGE OF 67 |
|---|---|---|
| Get reduced by 5/12 of 1% per month | From 63 to 62 | From 64 to 62 |
| Get reduced by 5/9 of 1% per month | From 66 to 63 | From 67 to 64 |
| Grow by 2/3 of 1% per month | From 66 to 70 | From 67 to 70 |
Notably, benefits peak at age 70, representing the maximum benefit. While those with an FRA of 67 receive a smaller maximum benefit (124% of their primary insurance amount), adhering to these rules is imperative.
Why Waiting Beyond 70 Could Be Costly
Delaying Social Security beyond the age of 70 is emphasized as it only incurs financial losses. It is advised to plan claiming benefits by this age, considering that applications can be submitted up to four months before benefits are intended to commence.
What if You Waited Too Long?
For individuals already over 70 who haven’t initiated Social Security claims, prompt action is recommended. While complete recovery of lost benefits may not be feasible, the Social Security Administration allows those at or over their FRA to claim up to six months of retroactive benefits. This provision helps mitigate some of the losses incurred.
[irp]Conclusion
Claiming Social Security after a certain age is unequivocally a mistake, and this decision should be approached with caution. The importance of understanding the implications of timing and being proactive in the application process cannot be overstated. For those who have delayed claiming benefits beyond the age of 70, the option of retroactive benefits provides a partial remedy. It’s advisable to engage with the Social Security Administration promptly to ensure a smoother process and to receive the largest possible benefit checks.
