2. Evaluate when to claim Social Security
Seniors who have turned 62 are now wondering whether claiming the Social Security benefits is the right move for them. This is a valid question and if you’re struggling to find out what you should be doing, we’re going to try to help.
Perhaps you’ve planned your savings in such a way that would ensure you’d only need to claim your benefits at the age of 70 in order to maximize each check. During uncertain times, it’s no surprise that you’d contemplate on not waiting any longer. On average, seniors receive $1,503 per month, but if you claim after your full retirement age your benefits will grow by 8% each year.
So, are you expecting a shorter than normal lifespan? Then you might as well dip into your Social Security early. But if you’re in good health and are expecting to live for longer, then you must ensure that your money lasts for several more years, right?
In order to make the right decision for you, here’s what you have to do.
- First, collect all the information you need. How much money do you think you’ll need during retirement? How will you get it? What are your savings plans or are you willing to take on extra work in order to achieve those goas?
- Look at your spending in great detail, from monthly to annual expenses, but also don’t forget about costs that may or may not spring up on you all of a sudden. During your golden years, you’ll probably keep bumping into them, so it’s important to not leave them out of the equation.
- In addition to savings, look at other forms of retirement income, such as turning your hobby into a small business. Finally, plan for inflation! This is one step a lot of seniors tend to forget, so don’t leave it out.
Now it’s simple. Will your costs exceed your income? Then that’s a sign that you should start claiming benefits early. Are there any ways to make adjustments before settling on this decision? Then now’s the time to kick them into gear!
