Too many people end up getting less than what’s due them from Social Security when they retire because they don’t know the rules and the real financial impacts, says independent retirement advisor Gary Marriage, Jr.
“There’s a lot of talk about the future of Social Security, but we still have this benefit and if you’re 50 or older, you should be planning to make the best use of it,” Marriage says.
Here is an important fact to keep in mind as you plan for how Social Security will factor in your retirement:
The reductions in Social Security add up to a considerable sum. The average retirement benefit in June of this year was 1,222.43, according to the Social Security Administration. People born in the 1943-54 group who are eligible for that amount at age 66 will get just $916.82 a month if they retire at 62. If they live to age 90, that’s a total of $308,052.36. By waiting just four years, they’ll net an additional $44,007.48. Waiting until age 70 can make you eligible for a bump in benefits – up to 8 percent a year – but there are no increases if you delay longer.