Social Security Planning is beneficial after retirement, as one of the biggest advantages of this program is its Flexibility. You can start claiming retirement benefits as early as age 62, or you can wait and receive fatter checks each month.
The amount you’ll receive in benefits that will depends on the age at which you file for Social Security. The full retirement age is between 65 and 67, depending on the year you were born.
If you wait until your full retirement age, you’ll receive 100% of the amount you’re entitled to. If you claim earlier than that, your benefits will be cut for every month you’re ahead of schedule, up to 30% at age 62.
However, for each month you delay benefits past your full retirement age, you’ll receive a bonus to make up for the time you spent forgoing benefits.
The most people start claiming benefits is 62. In 2013, 42% of men and 48% of women filed at that age, according to the Center for Retirement Research. Very few people wait until age 70 to file for social security.
In fact, only 4% of women and 2% of men hold out that long. That means the other 96% to 98% of Americans are missing out on this major Social Security perk.
Most of time you have to retire early because of health issues and you needed to claim benefits earlier. Wait until age 70, though, and you can receive up to 24% on top of your base benefit amount.