You’ve paid a lot of money into the system, but there are several factors to consider before claiming Social Security. The age at which you begin taking benefits is one of the most important, because it directly affects the amount you receive each month. Claiming Social Security at age 62 essentially penalizes you by 30% a month for life. By retiring early, not only will you reduce your monthly benefits, but you will also lower your earning potential. Working longer will help enhance your investment portfolio and boost your retirement income. 

Health and life expectancy should be taken into consideration before claiming Social Security. Family history can help you determine your ideal retirement age. If those who came before you died at a young age, it would make zero sense for you to wait to claim Social Security until age 70. Your spouse’s health, life expectancy, and work history should factor into your decision-making process as well. Will he or she outlive you? Did your better half pay more into the system than you or less? Whoever is predicted to have better longevity should wait to retire at a later age, especially if they are the higher earner. 

Where will your retirement money come from? You may be able to retire at 62 and delay claiming your Social Security benefits, if you have other income sources that can sustain your current lifestyle. Once you know what your income sources are you’ll have a better understanding of how your money will be taxed. If taxes take too much of a bite out of your income, you may need to work longer to afford the retirement of your dreams. 

Retiring well takes planning and professional help can go a long way to ensuring your plan comes to fruition. Alloy Wealth is known for educating others on how to live well, invest strategically, and retire successfully and we would love to become a partner in your financial journey. Contact us at 800-689-3935 to schedule an appointment with one of our team members.