Why Taking Social Security Benefits at Age 70 is a Mistake?

If you are about to retire in a year or couple, then it is the right time to plan your post-retirement life.  Taking Social Security Benefits is the most common thing for many senior persons in the US. However, there is a slight controversy going among the experts on predicting the right age when one should claim the benefit.

What is the Right Age to Claim Social Security Benefits?

Well, the Social Security Administration (SSA) reveals the claim benefit stats and details in the recent past. In that, more than 60% of the senior citizens fully or 50% depending upon the benefits of their Social Security.

As far as the SSA rules concern, the claim benefits for the senior people kick starts from the age of 62. However, considering the practical analysis that age is not the right time to claim the benefits.  For every year you wait to claim your benefits, the eventual payouts will grow up to 8% until you reach the age limit of 70.

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Claiming Social Security Benefits at age 70 would gains 76% high when compared with a claim made at 62 years. Because of that, most of the experts would suggest you claim the benefits when you reach 70 years.

However, our prediction differs from that fact. Although, the larger payout might sound better for senior people still it is not the best idea to follow.

Here is our explanation along with valid reasons.

Top 3 Reasons Proves Claiming at 70 Might Not Be the Best Idea

1. It’s Difficult to Make Claim at 70

Well, a recent survey report suggests, the lifespan of the Americans is keep reducing. On considering that fact, you may not live that much longer to make a claim.

3. Larger Payout May Not Be Optimal

It is true, for some people receiving large monthly payouts through claim at the age of 70+ would not be optimal. Since taking payment before 70 can be useful to repay the debt earlier.

3. Significant Benefit Cuts are around the Corner

Well, there are some rumors and predictions going as in the nearby future, there would be a significant cut on the Social Security Benefits.

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