Social Security planning and financial assistance can make up a large portion
of a person's retirement plan. The longer a person waits to start
collecting on Social Security benefits, the more they will receive monthly.
Oftentimes, it is in a person's best financial interest to wait until
the age of 70 to begin collecting.
Women Live Longer, Take Benefits Earlier
Women, however, make up the highest number of those that collect benefits
at 62, well before full retirement age at 66 and the age to receive maximum
benefits at 70. Women are most likely to live longer, with a full 25%
of women expected to reach the age of 90 or older.
Taking benefits at 62 puts the average payout at $1,062 per month, while
waiting until 70 increases this amount to around $1,630. Since the average
payout for women in generally less than that of men, this extra money
can be a huge benefit.
It is suggested that women access their benefits early due to a combination
of poor financial planning and the need for income due to early retirement.
Other reasons that women may access Social Security earlier is due to:
- The idea that collecting earlier will increase long-term payout
- Unawareness of Social Security options that are available
- Ill health that requires a steady income
- Fear of Social Security funds becoming depleted
Waiting to claim Social Security tax benefits is a proven way to pad a
bank account for retirement. Women should take special care to ensure
their financial stability for years to come.