Choosing when to take social security benefits

This advice won't be very relevant to my generation directly.

It is said that it is more common for Generation Y to believe in alien life than receiving anything from social security in the future.

Social security is a flawed system that will most likely bankrupt itself in the future.


However, some of my readers may have parents reaching their 60's and will have to decide when to start taking benefits.

This article will help them decide when to take benefits.

When you take out social security benefits, you will be locked into the regular payment for the rest of your life.

For most retirees today, the age to retire and collect social security is 65.

You can collect social security at the age of 62. The amount you will receive will be much less than if you had waited until 65.

Conversely, you can wait until the age of 70. The amount you will receive will be much greater than  if you had taken it out at 65.

I don't think there is a gradient. I don't think you will get a middle amount if you take the benefit at the age of 63 or 67.

Everyone's situation will be different, and everyone will have a different opinion on when is the best time to take out social security benefits.

I would recommend taking the benefit as soon as possible for the following reasons.

The biggest reason is that you get a couple of extra years to collecting the benefit.



This brings me to the second reason.

In your 70's and 80's, you are old. You should have your finances together and not need to depend on social security benefits for your whole retirement. It should just be some extra icing on a birthday cake.

Speaking of being old.

Reason number 3.

You don't know when exactly you will die.
Should you happen to actually die at the age of 74, you would not have had the chance to collect benefits.

Reason number 4.

Social security is currently an unsustainable program.

On each social security letter, it states that without major changes to the program, by the year 2038 or so, Social Security will only be able to pay out 3/4 of what was promised.

Taking social security as early as possible lessens the risk that you will not be able to collect everything promised to you.

Overall, social security is an unsustainable program that is bankrupting our country. Each year, our government spends almost $900 billion on the program.

However, if you have the chance to collect it, do it and do it smart.