Why Claiming Social Security Early Could Cost You Thousands
Friday, 13 September 2024, 08:20
7 Reasons Why Claiming Social Security Early Is Costly
Claiming Social Security early can have unexpected financial consequences. The following points outline why delaying your claim may be beneficial:
- Reduced Monthly Payment: Early claims lead to a permanent decrease in benefits.
- Longevity Risk: If you live longer, early claimants may miss out on higher monthly payments.
- Indexed Benefits: Delaying allows for benefits to grow with inflation.
- Spousal Benefits: Early claiming can affect spousal benefits in the long run.
- Tax Implications: Early claims might push you into higher tax brackets.
- Opportunity Cost: Missing out on potential investment growth.
- Social Security Trust Fund: Facing potential reductions in future benefits.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.