Thinking about retirement? It’s never too early to start planning, considering that health advances mean we’re living longer and will need funds for longer. The retirement age is 67 for those born after 1960, but the Social Security fund withdrawal process can begin as early as 62. That said, timing matters when we’re talking about your golden years’ financial safety net.
It’s possible to start dipping into your Social Security funds from the age of 62, but it can result in reduced monthly checks. Waiting a bit longer can prove beneficial in the long run. For example, if you start claiming at the age of 67, you could be looking at about $1,781.63 each month.
Waiting even longer can bump that monthly check up even higher. If you forego claiming until age 70, the monthly payout could be significantly larger, thus ensuring a more relaxing retirement. It’s essential to remember that the strategy you decide on will directly influence your retirement income.
Let’s break down the numbers.
Strategizing early withdrawal for Social Security
Start the withdrawal at 62, and you’ll get about 70% of the usual payout. Wait until 67, and you’ll receive 100% of your payout, which is approximately $1,782 per month. If you can wait till 70, you’ll get about 121% of this monthly amount – more than $2,000 each month!
Still, these strategies require careful thought and consideration. You’ll need to evaluate various factors, including your life expectancy, personal financial needs, and overall money matters, to make the best decision for you.
If you’re willing to wait a bit longer, here’s what you’re looking at. Delay until 63, and you can expect around $1,336.50 each month, 75% of the total payout. Wait till 64, and you’ll get around $1,425.60, or 80% of the monthly check. Postpone until 65, the monthly figure nears $1,545 (around 86.7% of the full check), and delaying till 66, you can anticipate about $1,664.37 per month.
At 68, you’ll be looking at almost the full monthly check (approximately $1,783.76), and at 69, you’re eligible for more than the full standard payment. So, when it comes to retirement fund withdrawals, patience can yield significant dividends!
