Deciding when are going to start claiming your Social Security benefits might be the toughest decision you will ever make because it will have a lifetime impact on your retirement days. This Social Security 2023 Update, will help you understand more what will happen if you start claiming at 67.
Social Security 2023 Update About Why You Might Regret Claiming Benefits At 67
Signing up for Social Security at the right time is essential. The FRA for everyone will be set at 67 years old, regardless of when you were born. Moreover, for Americans born in 1960 or later, the full retirement age (FRA) is 67.
It is anticipatable that when reaching the full retirement age, many people will begin requesting benefits. Some even started asking for a Social Security 2023 update. However, it can be a financial disaster because the longer you delay filing for Social Security, the bigger your monthly payment.
The Motley Fool reported that if you start claiming your Social Security benefits after 67, you get more than 100%, gradually rising until you reach age 70. But waiting for more could be something you’ll come to regret.
However, if you will collect your benefits at 62, you will receive less than 100% of your Social Security benefits. But there are many factors to consider such as your life expectancy being much lower than normal due to a medical condition or if you need to pay down excessive debt.
The more years you wait up to age 70, your monthly benefits increase by about 8% a year.
The Average U.S. Senior Age
Data from the Centers for Disease Control mentioned by Gobakingrates that the average U.S. senior who reaches age 65 can expect to live another 19.6 years, so if you claim benefits at age 67 instead of waiting another couple of years, you could face nearly two decades of lower monthly payments.
Lastly, it is still your choice, and just remember to consider Health issues, family, and your expected lifestyle in retirement are just some of the other issues that come into play.