Californians planning for retirement and wondering what the best age may be to start receiving Social Security may want to wait a few additional years, according to experts, who say waiting can pay off in a big way. Reporter David Haldane explains…
Americans can begin receiving Social Security benefits at 62, but those benefits will be permanently reduced for each year they are taken before age 66. Kristen Arnold, a spokeswoman at the National Academy for Social Insurance, says a majority of seniors in the Golden State are shortchanging themselves.
“More than 66 percent of beneficiaries in California have their monthly benefits reduced due to taking Social Security early. People are leaving money on the table.”
Of course, many simply can’t afford to wait because of poor health, a job loss or lack of adequate savings, in which case Arnold says they should start claiming benefits. But those who can wait until age 66 receive their full benefits indefinitely, and those who can afford to hold off until age 70 will see a substantial jump in benefits.
Arnold says the monthly check can be worth up to 76 percent more than it would have been had they taken the money at age 62.
“If you’re working, you don’t have to take Social Security. You can wait and, for each year you wait, your monthly benefits will increase by eight percent. And that monthly increase in benefits lasts for as long as you live.”
Arnold adds that Californians shouldn’t take benefits early out of fear that Social Security might run out of money. It is fully funded for the next 20 years, and 75 percent funded after that.
