Delaying Social Security can result in significant financial loss

Many retirees claim Social Security benefits at age 62, which is the earliest age to receive them. While delaying benefits can lead to higher monthly payments, it is not the best choice for everyone. Some individuals may lose out on a significant amount of income by choosing the wrong age to file. One reason not to delay is job loss. If someone is laid off before full retirement age, they might choose to claim Social Security. At 65, it can be difficult to find new work due to age discrimination. If there is no income coming in, delaying benefits could lead to financial trouble, including debt, which can be risky later in life. Health concerns are another factor. If someone's health is poor, waiting for benefits could result in less total income if they do not live long enough to enjoy the extra payments. Moreover, if they want to use Social Security for experiences like travel, delaying might mean missing out on those opportunities. Limited savings are also a key reason to consider claiming benefits earlier. While experts often suggest drawing from savings to let Social Security grow, this only works if there is enough savings to support living expenses. For those with smaller savings, like $200,000, relying on them until Social Security kicks in could quickly deplete funds. In summary, while delaying Social Security can increase monthly benefits, it is essential to assess personal circumstances. Job loss, health issues, and limited savings may all influence the decision on when to claim benefits. It's important to make a thoughtful choice to avoid future regrets.