Carefully consider when you should claim Social Security benefits.

You are nearing retirement.

As you review your finances, you are trying to determine when you should claim your Social Security benefits.

You wonder at what age Social Security is most commonly claimed.

The answer found in a 2020 analysis by the Bipartisan Policy Center was age 62.

About 40 percent of women and 35 percent of men claim Social Security at this time.

According to a recent Money Talks News article titled “This Is When the Most People Start Taking Social Security,” the next most common ages for taking Social Security are age 66 and age 65.

Waiting to claim Social Security will give you a larger check.

Age 62 is the earliest age Americans are eligible to claim Social Security.

For some people, this is a wise move.

If you are unable to make ends meet without the benefit, you may need the money now.

Another common reason for taking Social Security at the earliest possible date is having some reason to anticipate a shortened lifespan due to health issues.

If these situations do not apply to you, taking Social Security before full retirement age may harm your financial future.

How so?

By waiting, your benefit amount will increase each year until you reach full retirement age.

By not taking benefits until age 70, you can also take advantage of delayed retirement credits.

This means you will receive a larger monthly income check.

By choosing to claim Social Security at the earliest possible time, American lose $3.4 trillion in potential income.

On average, the loss for each household is $95,000.

Yikes!

As aging Americans become aware of this, more are choosing to delay the start of their Social Security benefits.

The Bipartisan Policy Center estimated Americans over age 70 would experience a decreased poverty rate from 13 percent to 7 percent if all Americans claimed Social Security at the maximized lifetime income age.

Evaluate your own situation to determine when to claim Social Security.

Better yet, engage the services of a financial advisor experienced in retirement planning, to include retirement distribution planning.

Reference: Money Talks News (Jan. 20, 2021) “This Is When the Most People Start Taking Social Security”