The perfect age to start Social Security doesn't exist
Your claiming age has a huge effect on how much you get from the program, but once you've made your choice, it's difficult to undo it. You may already have a claiming age in mind. But you wonder whether it's really the perfect age to sign up.
The short answer to that is no. There is no such thing as the perfect Social Security claiming age. But there are some ages that could be better than others for you.
How your claiming age affects your Social Security benefit
You can claim Social Security as young as age 62, but you're not actually eligible for the full benefit you've earned based on your work history until you reach your full retirement age (FRA). This is 67 for most workers today, though some older adults have FRAs as young as 66.
Claiming before your FRA reduces your checks by 5/9 of 1% per month for up to 36 months of early claiming and then by 5/12 of 1% per month thereafter. That means someone with a FRA of 67 who claims as soon as they turn 62 will only receive 70% of the amount they could've been entitled to had they waited until their FRA to sign up. It's enough to knock a $2,000 monthly benefit down to just $1,400 per month.
Put another way, your checks grow a little for every month you don't claim, and this continues until you reach 70. Once you pass your FRA, your checks grow by 2/3 of 1% per month. That can add 24% to your checks if you have a FRA of 67. But it also means you have to cover your retirement expenses on your own for a longer period.
Choosing the best claiming age for you
While there is no single best claiming age for everyone, there are some ages that are better choices for you than others. It depends on a few key factors. The first is your financial situation. If you don't have adequate personal savings to cover your expenses in the meantime and you're unable to work, claiming Social Security early might be a smart move to keep yourself financially secure, even if it means settling for a smaller lifetime benefit.
When this isn't an issue, the ideal claiming age often comes down to life expectancy. Those with longer life expectancies often benefit more from delaying Social Security, while those with shorter life expectancies may get more from claiming early.
If you're married, you also have to consider how your claiming age may affect your partner's spousal Social Security benefits, which are worth up to one-half of the benefit you qualify for at your FRA. They cannot claim these checks until you've applied for Social Security. It's important to talk through your options with your partner to make sure you're both on the same page about when you want to claim.
This will go a lot easier if you each create a my Social Security account. There's a tool there that can help you estimate your benefit at various claiming ages, and calculate your spousal benefits too. If you expect your income to change between now and retirement, you can make adjustments for that as well.
Once you've got an approximation of how much you can expect to get from Social Security each month, you can begin to figure out how much you'll need to save for retirement on your own. But keep in mind that if your health or financial situation changes, you may need to update your retirement and Social Security plans.
The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
The $23,760 Social Security bonus most retirees completely overlook
Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies.
View the "Social Security secrets" »
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
36 minutes ago
- Yahoo
South Bend trailer park residents face a chilling choice — remove their window A/C units or risk eviction
If you've ever sweated through a Midwestern summer without decent cooling, you know it's more than just uncomfortable — it can be downright dangerous. For folks at Countryside Village trailer park in South Bend, Indiana, this summer's heat comes with an added challenge: remove your window A/C units or risk losing your home. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it "They won't tell you why they want us to take them out," one resident shared with WNDU. "We've got elderly people that live in here, sick people that live in here, and they could die." The situation has residents worried, with Indiana lawmakers scrambling to find legal remedies for those facing the potentially dangerous summer heat. Since September, 2024, Countryside Village's management has been crystal clear. "If you have window A/C units, you must remove them,' management stated in a letter sent to residents, according to WNDU. 'After three violations, evictions can and will be filed." What makes this situation particularly tricky is that while many residents actually own their trailers, they pay lot rent fees to YES Communities, which owns Countryside Village as well as hundreds of other trailer parks throughout the country. YES Communities's guidelines, which all residents must sign with their lease, explicitly state that window A/C units are not permitted. With South Bend summer highs historically averaging 83°F in the month of July, residents could now face potentially hazardous indoor temperatures. 'With my medical issues, no it is not safe,' said another Countryside Village resident. 'I had a doctor's appointment yesterday, and my doctor physically wrote me a doctor's note that I have to have an A/C unit in my trailer.' **Read more: No millions? No problem. With as little as $10, here's how you can access this $1B private real estate fund of diversified assets usually only available to major players Stephen Dempsey, who lives in Countryside Village, is one of the fortunate residents with central air, but he worries about his neighbors who aren't as lucky. "I think they're putting a lot of pressure on people unfairly, especially a lot of the longtime residents who are on fixed incomes,' said Dempsey. 'They can't afford to just go buy a whole brand-new air conditioner unit." And he's not wrong — portable air conditioners (which are the most likely alternative to window A/C units) typically cost between $300 and $700 at major retailers like Home Depot and Lowes, with additional costs for proper venting and installation. For those on Social Security or receiving disability benefits, that's no small expense. Dempsey also knows the dangers that a lack of air conditioning can have on elderly and infirm residents. "Especially for an older resident, anybody with any kind of health issues. It can be dangerous," said Dempsey. And he's not exaggerating. According to the Centers for Disease Control, heat-related illnesses cause more than 700 deaths annually in the United States, with elderly people and those with chronic health conditions at the highest risk. YES Communities has not issued a statement on the situation at Countryside Village, despite WNDU's multiple attempts to learn why it just started enforcing this long-standing ban. However, the situation at Countryside Village has stirred local politicians to step up for the trailer park residents. State Senator David Niezgodski has formally requested Attorney General Todd Rokita to investigate, calling the situation "not just a housing issue; it's a public health emergency," according to the Indiana Senate Democrats website. If you're facing something similar to the situation in Countryside Village, there are several steps you can take before removing A/C units that could be essential for your health and wellbeing: Check your lease for the exact policy details on window A/C units. Get medical documentation if heat affects your health and window A/C units are not permitted. Request accommodation in writing with management for health conditions that require A/C in your home. Contact local legal aid for assistance if management isn't cooperative. Contact your local news outlet in the hopes of drawing attention to your situation, as the residents of Countryside Village had done. Report potential violations to your state attorney general. The Fair Housing Act protects individuals with disabilities, and extreme heat sensitivity related to certain medical conditions may qualify for reasonable accommodations. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Black America Web
2 hours ago
- Black America Web
WTFGO In Politics: Social Security Shake-Ups, Deportation Drama & Trump's Alligator Alcatraz Disaster
Source: GIORGIO VIERA / Getty From rising retirement ages to climate disaster and deportation threats, this week's political headlines serve up a chaotic cocktail of urgency, absurdity, and deeply real consequences. Check out WTFGO in politics this week inside. Let's start with your future. According to Blavity , the full retirement age for Social Security will begin increasing from 67 to 70 starting in 2026. While lawmakers say this is to 'save' the program for future generations, critics note that it disproportionately harms working-class Americans. It's especially concerning for Black and Brown communities already experiencing shorter life expectancies and chronic health disparities. Gen Z and Millennials are questioning whether they'll ever be able to retire at all, or if they're stuck hustling forever in the name of 'economic sustainability.' As if things weren't already heavy, another article from Blavity reports that the Trump administration is officially ending Temporary Protected Status (TPS) for Haitian immigrants this September. Over 200,000 Haitians who've legally lived in the U.S. for years could now face deportation. This move comes despite Haiti's ongoing political instability and humanitarian crises. Immigration advocates warn that the decision is not just cruel, but it's deeply anti-Black and undermines the U.S.'s role in global humanitarian responsibility. Now for the absurd: President Donald Trump's newly announced migrant detention center named 'Alligator Alcatraz' flooded in one day. Located at the Dade-Collier Training and Transition Airport, inside Big Cypress National Preserve, in Ochopee, Florida, some have likened the facility to Alcatraz due to its isolation and harsh conditions. Just their luck, the facility flooded within 24 hours of opening. Yep—you read that right. One day into operation and it was already underwater. The irony is rich: the Trump administration, which has aggressively pushed immigration crackdowns and privatized detention centers, now faces backlash not just for cruelty—but incompetence. Critics say it's a metaphor for the administration's entire immigration agenda: rushed, inhumane, and unsustainable. From aging Americans expected to grind longer, to Haitian families under threat of deportation, to Trump's dystopian detention facility quite literally sinking, it's been another week of WTF-level political whiplash. Whether it's your retirement, your rights, or your safety, this political moment demands our attention. Stay alert, stay informed, and keep asking WTF is going on. SEE ALSO WTFGO In Politics: Social Security Shake-Ups, Deportation Drama & Trump's Alligator Alcatraz Disaster was originally published on
CNN
3 hours ago
- CNN
America's tariff-driven buying spree leaves households saddled with debt and financially vulnerable
Washington CNN — Linda Wilburn, a 62-year-old retiree in Susanville, California, did not plan to buy a car this year. She originally wanted to save up, build her credit and buy a used car next year — a necessary purchase, she said. But President Donald Trump's tumultuous trade war drove her to buy a car this past April, fearing higher prices if she waited any longer. Now Wilburn has a $607 monthly car payment coming out of her $1,600 Social Security check, which she said is her only source of income. 'Things are so tight right now,' Wilburn told CNN. 'But the car was a necessity because of my oldest son's medical appointments.' As Trump waged a global trade war this past spring, many Americans raced to make major purchases — cars, electronics and furniture — trying to beat any potential price hikes caused by tariffs. That spending spree has left many with new debt and could weigh on consumer spending, which powers the US economy, in the months ahead. Retail sales surged in March as consumers drove up car sales, spurred on by tariffs targeting imported cars and auto parts, which went into effect in April and May, respectively. But those numbers have weakened since then, according to Commerce Department data, declining 0.9% in May in the steepest monthly decline in two years. Meanwhile, US household debt reached $18.2 trillion in the first three months of the year, a record high on data going back to 2004, as delinquencies marched higher, according to data from the Federal Reserve Bank of New York. For families like Wilburn's, the spring's spending spree was a gamble against uncertainty —a bet that may now require years of careful budgeting to manage. 'Once I get everything level again, hopefully it will get easier, but I don't know,' Wilburn said. 'Now we can't really do anything for our enjoyment, like buy bird food for all the birds in the backyard.' Cutting back on spending Americans who are now saddled with new debt may pull back on their purchases. Economists say 'discretionary spending' — purchases that are not necessary for one's survival — is usually first on the chopping block. That includes eating out and traveling for leisure. A Bankrate survey of consumers' plans for discretionary spending showed that 54% of US adults said they expect to spend less on travel, dining out or entertainment this year, up from 49% who said the same last year. In May, retail spending at restaurants and bars fell 0.9%, the Commerce Department said, the first monthly decline since February and the steepest one since February 2023. Annika Wheelock, 28, and her family used a loan and a home equity line of credit to accelerate spending on more than $137,000 in purchases — including a new car, computers, a refrigerator and home repairs – to avoid any sticker shock from Trump's tariffs. With her husband returning to school this fall and their retirement contributions slashed, Wheelock, who works as a nurse, says her family is now living paycheck to paycheck. 'After making all these purchases, we're hunkering down and not planning on spending that much money, like we're not planning on going out and putting money back into the economy anytime soon,' she said. In March, a CreditKarma survey of more than 2,000 US adults showed that 51% of them said they changed their spending behavior in anticipation of Trump's tariffs, with 18% specifically saying the pulled forward major purchases. Feeling financially vulnerable as tariff-induced inflation looms Trump's tariffs are widely expected to eventually weigh on Americans through higher inflation, even those who front-loaded their big-ticket purchases. That means consumers who took part in the spring spending spree are left even more financially vulnerable. Henry Tuason, a 52-year-old school photographer from Los Angeles, said he spent nearly $50,000 earlier this year on a new laptop, television and a $45,000 Hyundai Tucson Hybrid to get ahead of the tariffs' impact. He said he's been on edge these days, worried his family could suddenly deal with an unexpected hardship. 'One day, when I went to go pick (my wife) up from work, people were driving very badly and I told her how picking her up is stressing me out because of this brand new car,' he said. 'She's gone back to taking the bus because to crash it prematurely would be very bad.' And it's not just being prepared for emergencies. If more Americans find themselves without a job or dealing with any financial hardship, that would further trigger a pullback in spending. 'Anytime you lose a job is bad, but it'd be much worse if me or my wife did nowadays, after everything we bought,' Tuason said. The unemployment rate remains at a low 4.2% for the third consecutive month in a row and employers are still demonstrating an appetite to hire. On Tuesday, the Labor Department reported that job openings unexpectedly rose in May to 7.7 million. However, entry-level hiring is down and Trump's chaotic trade war paralyzed some business decision-making. For now, Wall Street and economic policymakers are watching closely whether spending plummets after households stretched themselves to beat Trump's tariffs. 'As the tariffs kick in with price increases finally taking effect, that will be a hit to people's real income, their purchasing power, and because of that, you will see a slowing in consumer spending,' Jay Bryson, Wells Fargo's chief economist, told CNN. 'And that will also be because of that pull-forward in spending.'
