Here are 3 awful reasons to take Social Security benefits at age 65

Here are 3 awful reasons to take Social Security benefits at age 65

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With a quickly growing aging population, securing Social Security funds is nowadays more all-important than ever. But how did we get here in the first base place ? just the FAQs, USA TODAY The age you land on for claiming Social Security could affect the monthly benefits you receive for life. Those benefits themselves are calculated by taking your modal monthly earnings during your 35 highest-paid years in the work force, adjusting them for inflation, and applying a special rule to that number. You ‘re then entitled to collect your monthly profit in full once you reach fully retirement age. But you actually get an eight-year windowpane to sign up for benefits that starts at senesce 62 and ends at age 70. In fact, you technically do n’t have to sign up at 70, but delaying past that item wo n’t put more money in your pouch, so there ‘s no sense in waiting longer. presently, 62 is the most democratic age for seniors to start collecting benefits. But if you ‘re contemplating that decision, you may be inclined to go with long time 65. And while that could be a wise option in some cases, here are three awful reasons to land on 65 as your file old age. What’s the most popular type of credit card?  It ‘s not travel cards, according to this metric

1. You don’t know your full retirement age

You might assume that 65 is your full retirement age for Social Security purposes because that ‘s when you ‘re first eligible for healthcare coverage under Medicare. But for people born between 1943 and 1954, full moon retirement age is 66. For those born between 1955 and 1959, it ‘s 66 and a certain number of months. And for those born in 1960 or later, it ‘s 67. If you sign up for Social Security at 65, you ‘ll automatically slash your monthly benefits between 6.67 % and 13.34 %, depending on your wax retirement age, so quite than grapple with a lifelong decrease in Social Security income, commit your full retirement old age to memory. Incidentally, in a late Nationwide surveil, only 24 % of older adults knew what their full retirement age was, so if you ‘re nearing retirement, be surely to get that number straight. Social Security: By 2022, only these 12 states will tax benefits

2. You’re worried you won’t get Medicare coverage 

It could be the event that you want to start getting Medicare benefits at 65 and are n’t quick for Social Security — but you sign up for Social Security at that historic period anyhow because you ‘re convinced your Medicare coverage hinges on it. In reality, though, you can be on Medicare for years before claiming Social Security, and it wo n’t impact the floor of care you receive. The only drawback to signing up for Medicare before Social Security is that you wo n’t have the option to pay your Part B premiums directly from your Social Security benefits. not merely does that mean you ‘ll need to take that step yourself, but it besides means you do n’t get protective covering under Medicare ‘s handle harmless planning. This provision effectively caps the extent to which your Medicare premiums can rise from year to year when you ‘re on Social Security, because an increase in Part B ca n’t cause your monthly benefit to go down. In early words, if your annual cost-of-living alteration raises your monthly Social Security benefit by $ 12, but Medicare premium costs arise by $ 13, you ‘re only liable for the extra $ 12. still, the decrease in benefits you ‘ll face by claiming Social Security early will generally well outpace any increase Part B throws at enrollees, so if you ‘re quick to sign up for Medicare at 65 but do n’t need your Social Security benefits fair so far, do n’t feel compelled to claim them. Apple has an iPhone problem: Could a ‘subscription iPhone ‘ be the answer ?

3. You’re scared Social Security is running out of money

There are rumors abounding that Social Security is on the scepter of bankruptcy, but actually, that ‘s far from truthful. Social Security gets its fund from payroll taxes, so despite the program ‘s fiscal woes, it ‘s not in danger of going away. right now, the worst-case scenario is a electric potential cut in benefits in 2035 to the tune of 20 %, but that assumes lawmakers wo n’t step in and prevent that from happening, which many are invested in doing. therefore, do n’t file for Social Security at 65 because you ‘re worry that by waiting, you ‘ll risk not getting paid any benefits at all. That scenario equitable is n’t on the table, and if you file at 65 rather than wait until wide retirement senesce or by and by, you ‘ll risk losing out on a solid sum of monthly income for life. Claiming Social Security at 65 is n’t always a bad idea, and with attentiveness to reducing benefits, it does n’t cause about the lapp extreme hit as filing at 62. But if you ‘re going to sign up for Social Security at 65, make surely you ‘re doing so for the correct reasons, and not because you ‘re ill-informed or buying into myths. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Offer from the Motley Fool: The $16,728 Social Security bonus most retirees completely overlook If you ‘re like most Americans, you ‘re a few years ( or more ) behind on your retirement savings. But a handful of little-known “ Social Security secrets ” could help ensure a boost in your retirement income. For model : one easy trick could pay you vitamin a much as $ 16,728 more … each year ! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we ‘re all after. Simply click here to discover how to learn more about these strategies .

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