Today’s Throwback Thursday –
The timing of claiming Social Security is key. The earlier a worker files to receive Social Security, the lower the monthly payment for the rest of that worker’s life. The longer a worker waits, the larger the benefit.
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Near retirees in Greater Baltimore are being beckoned by a billboard on wheels encouraging them to delay claiming Social Security. Baltimore is one of five U.S. cities where the National Committee has rolled out the “Delay and Gain”project, now in full swing.
In addition to mobile billboards, the public education project is reaching out to older workers via radio ads, editorial content, and social media. The message is straightforward: workers who delay retirement can gain bigger Social Security benefits – extra income that they’ll need in old age.
Read more from our newest blog post by clicking here.
Today, we are announcing the rollout of our new education initiative, Delay and Gain! We will be highlighting the benefits of delaying retirement in order to receive more Social Security benefits.
You can learn more by clicking here.
It’s no secret that American workers face a major retirement crisis. Wealth inequality and workplace changes mean more and more retirees have come to rely on Social Security for most of their income. But the average monthly Social Security benefit in Maryland is $1,472 — or roughly $18,000 per year, which is only slightly above the federal poverty line. And even with Social Security, some 7 percent of Maryland’s seniors live in poverty.
The good news is that Maryland workers can increase the size of their future Social Security checks by delaying retirement. Delayed claiming past the early retirement age of 62 results in bigger monthly benefit checks for life, and waiting until after the current full retirement age of 66 yields even greater gains — up to 44 percent more than early claiming.
But too few Marylanders are taking advantage of this “delay-and-gain” strategy, or are even aware of it. The average age for claiming Social Security in Maryland is 64 — two years older than the minimum, but early enough to be penalized with lower benefits, which are cut by roughly 6 percent for every year that they file for Social Security before the full retirement age.
Read our full op-ed by clicking here.
It’s tempting for some to retire early and start taking social security benefits at age 62, but if you can wait, that is the smart move. The average Social Security benefit in Kentucky is roughly $16,000 per year. Even with Social Security, some 13% of Kentucky seniors live in poverty.
A lot of people say they plan to retire early simply because they are “sick and tired of working.” If they retire too soon, they might be even more sick and tired of not having enough money in old age.
You can increase the size of your future Social Security checks by delaying retirement. If you wait until you’re 66 to start taking your benefit, you can receive up to 44% more. And your cost of living increases going forward will be based on the higher amount. Life expectancy is much longer now than it was in 1935 when social security was created. Seniors of today must survive on their fixed incomes even longer.
via WDRB.
Related Reading:
Fox 41 General Manager Bill Lamb echoes National Committee “Delay and Gain” project in on-air editorial: “It’s tempting for some to retire early and start taking social security benefits at age 62, but if you can wait, that is the smart move.”
You can learn more about our education initiative, Delay & Gain, by clicking here.
Workers in Louisville face a major — and very real — retirement crisis. Wealth inequality and workplace changes have practically sawed off two of the legs of the traditional retirement stool: pensions and private savings.
More than half of today’s retirees rely on the third leg of the stool, Social Security, for most of their income. (The average Social Security benefit in Kentucky is roughly $16,000 per year, only about $3,500 above the federal poverty line for individuals.) Even with Social Security, some 13% of Kentucky seniors live in poverty. The good news is that workers can increase the size of their future Social Security checks by delaying retirement.
Read more from our new op-ed by clicking here.
It’s no secret that American workers face a major – and very real – retirement crisis. Wealth inequality and workplace changes have all but kicked out two of the legs of the traditional retirement stool: pensions and private savings – both of which are at historic lows.
More and more retirees have come to rely on the third leg of the stool, Social Security, for most of their income. (The average monthly Social Security benefit in New York State is about $1,450 or some $17,000 per year, only slightly above the federal poverty line.) Even with Social Security, 10% of New York’s seniors live in poverty. The good news is that workers can increase the size of their future Social Security checks by delaying retirement.
Read more from this op-ed by clicking here.
Andy Landis worked in the Social Security Administration’s field offices for 12 years, helping people figure out when and how to file for their retirement benefits. He is more familiar than most with how people weigh the pros and cons of a key choice–whether to start benefits as early as possible or get a higher payment down the road by delaying their claims.
“I would run through all the numbers with people on the additional benefits they could receive by waiting,” he said. “At the end of it, the response would be: ‘Thank you very much–now just give me my money. I don’t know how long I’ll live.‘”
Landis is a top expert on Social Security, and his experience underscores something any expert in behavioral economics can tell you: Given the choice between receiving a benefit now or later, most people prefer sooner, even if receiving the benefit later would be more valuable. Indeed, in 2016, 56% of men claimed before their full retirement age, as did 62% of women, according to the Social Security Administration.
Many Social Security claimants who consider delaying want to analyze what they regard to be a key number: their break-even age, or the age when total lifetime benefits received would be equal to using a different claiming age. Taking benefits early works out to your advantage if you don’t live to the break-even age. You also come out ahead if you delay benefits and then live beyond the break-even point. The losing scenario is delaying benefits and dying before reaching the break-even age.
via Retirement Revised.
Related Reading:
When is the best age for Americans to
claim Social Security?
- The timing of the claim is key. The earlier a worker files to receive Social Security, the lower the monthly payment for the rest of that worker’s life. The longer a worker waits, the larger the benefit.
Hold Off to Gain Bigger Social Security Check.
- Deciding when to claim Social Security retirement benefits is one of the most crucial decisions a worker can make. The full retirement age for Social Security is 66 and rising to 67 soon.
- But you can claim benefits as early as 62, or as late as 70. The longer you wait to claim, the higher the monthly benefit for the rest of your life.
Unfortunately, nearly half of workers nationwide are unaware of the financial advantages of waiting to claim. That is why our organization has launched “Delay and Gain,” a public education project to help Louisville’s older workers understand what’s at stake.
Max Richtman via Louisville workers can gain big by delaying retirement.
The retirement advice that James Lange has been offering people who have reached retirement age makes sense on paper, even if it’s a tough pill to actually swallow when it comes to planning their own strategy.
While the most common age that people choose to start collecting their monthly Social Security payments is 62, Mr. Lange believes — with few exceptions — anyone at risk of running out of money in their golden years should keep their hands out of the Social Security cookie jar until they reach the maximum filing age of 70.
Related Reading:
When is the best age for Americans to claim
Social Security?
When to claim Social Security retirement benefits is one of the most crucial financial decisions facing older workers. But not everyone makes informed choices.
The timing of the claim is key. The earlier a worker files to receive Social Security, the lower the monthly payment for the rest of that worker’s life. The longer a worker waits, the larger the benefit.
When to claim Social Security retirement benefits is one of the most crucial financial decisions facing older workers. But not everyone makes informed choices.