Social Security is the most common source of lifetime income; however, under a normal situation, it can’t be drawn on until age 62 and that amount will be at a reduced rate for the rest of your life.
The longer you can hold off taking Social Security retirement income will ensure larger amounts in the long run. For example, if you have an entitlement of $1000 per month at the age of 62 but wait until your full retirement age of 66 you would be entitled to $1400 per month. That is an increase of 40%; however, if you can withstand until age 70, your check each month would be $1900 which is a 90% increase.
The Social Security program is the topic of many discussions in terms of spending cuts; this leads many people to start withdrawing their benefits as soon as possible. It is important to calculate where your break-even point would be on those three options to ensure you are receiving enough income for the rest of your life.
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