When we age into the time we can claim Social Security the temptation is strong to get the money as soon as we can. In fact, most people claim as soon as they can at 62. I get it. I love having extra money in my pocket, but it’s important to understand that we may be giving up quite a bit of money.

The Wall Street Journal had an article last Sunday about this topic. It said, “A recent study, funded by the Federal Reserve Bank of Atlanta, finds that retirees often give up tens of thousands or even hundreds of thousands of dollars by taking Social Security benefits too early.” The article states that researchers found that 90% of people would benefit from waiting to claim until 70, and this would increase discretionary income spending by 10% or $182,370. Did you ever think that claiming early could be that costly?

If you’ve already claimed, you’re not alone. Only 10% of people will wait until age 70. I’ve found that most people get little to no help with making Social Security decisions. The rules surrounding how to claim are daunting too. It’s been estimated that there are 81 age combinations and 567 sets of calculations to determine how and when to claim your Social Security. It’s not exactly easy to figure out. In our office we use software to analyze the best claiming strategies. The computer program will show you how you can get the most out of your benefits over your lifetime.

Unfortunately, you won’t get this help at the Social Security office. Sadly, the government is not equipped to give you advice on how to claim a benefit that you’ve paid into since you began working. Also, what I find is that most people who come into our office to talk about their Social Security have a financial advisor, and yet that advisor has never given them an objective plan for how to claim their benefits. You have to scratch your head and wonder why. After all, the difference in how we can claim Social Security can be the difference of over a hundred thousand dollars. Making the wrong decision may cost you.

If you’d like to get a Social Security report that illustrates how to get the most out of Social Security, please let us know. We can schedule a 15-minute call to get a few details to run the report. We’d be happy to provide this complimentary resource. You can reach us at 864.641.7955.

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