If you are deciding to file for social security at 66 here are something you need to consider. Before concluding why it could be worst to take social security at 66, you need to make sure things crystal clear. Keep in mind that the basis of your social security is upon the calculation of how much you have earned throughout your life. In this respect, you also need to decide what the right age to make claims on it is.
Factors that determine why it could be worst to take social security at 66
In order to make social security claims, it is preferable that you consult an accountant or tax preparer who would guide you throughout the claiming process. They will engage you to keep certain factors in mind before making the social security claim. It is because these factors determine whether the social security amount would go up, down or remain as it was from day one. For this reason, it is immensely significant that the only wait for the right age for the filing of such claims at the very start.
The journey of social security from age 62 to 70
Those qualified employees who sign up for the social security receive a duration of eight years. It is because the social security commences at the age of 62 and reaches its completion at the age of 70. On a technical standpoint, no one will compel these qualified employees to leverage the social security at 70. It is because there is no such valid reason as to not to.
Many of these employees collectively share the opinion that as the age of 66 lingers between the age range of 62 to 70, it is the ideal time to sign up for social security. However, at times we need to see the other side of the picture. Some people may not be unsure about the age of 66 for signing up for social security. They, in turn, present reasons as to why it could be worst to take social security at 66.
If the majority of the employees share the view that 66 is the right age for social security signing, they need to keep certain factors in mind. So let us take a brief look at them:
You may not have reached the full retirement age
Many of the Tax preparers or accountant usually advise you that you should wait for your full retirement age to get maximum advantage of your social security. In this way, on the basis of your monthly earnings record, you can enjoy the maximum monetary benefit that is in store for you.
We can understand this point better with an example. Let suppose if your full retirement age is 66 and you file for social security at the age of 62, then it is where the problem arises. Instead of enjoying the maximum advantage of earnings, you will receive a 25% reduction in monthly payments.
Although unanimously it is agreed that the full retirement age is 66, this age may not be favorable for all. That is why it could be worst to take social security at 66. It is because the retirement age is dependent on the year the person is born.
Benefits of social security at 66 may require you to pay a cost
Let suppose that 67 is your age of retirement needed to enjoy the social security benefits. However, it so happens that you are in desperate need of money a year earlier that is at the age of 66. So, if you need to withdraw the funds from your earning a year earlier, you will still enjoy the benefits of social security but at a cost. At that time, you will definitely get affirmative answers as to why it could be worst to take social security at 66.
So, it shows that if you retire at the age of 66 which is not your full retirement age, then you will receive reduced benefits. In other words, you will lose 6.7% of the earnings that you need to spend your retirement life.
Although the retirement age is 66, still the employees need to talk about certain factors in mind. These factors are the reason why it could be worst to take social security at 66.
