As baby boomers approach retirement, additional of them are taking Social Security benefits at the youngest age allowed. Some baby boomers have been forced to take Social Security early because of losing careers and spending savings during the recession, while others are compelled to collect Social Security benefits before the program goes bankrupt. Social Security benefits isn't really going away, according to most financial experts, who recommend that individuals hold out at least until the official retirement age to maximize benefits. Post resource - More Americans get shortchanged by taking Social Security early by MoneyBlogNewz.



The reason why Americans take Social Security early



In 2009, 42 percent of 62-year-olds opted to take Social Security at the youngest age allowed, according to the Brookings Institution. Each year of waiting, Social Security benefits increases 8 percent until age 70. Nevertheless, the number went up from 38 percent in 2007. Many of these people wanting their Social Security have lost their jobs and can’t find more work. Others assume that since Washington debates have recently talked about rising the retirement age and cutting Social Security benefits entirely, they might also get in now. The baby boomers starting to retire aren’t impacted by the possible Social Security reform anyway that goes far into the future. Most financial experts believe that there will not be any change in Social Security benefits until 2037 at the earliest, even with the system change.



Things that are not true about early Social Security benefits



The issue with getting early Social Security is certainly there. Still, most retirees have no idea that. Claiming Social Security benefits at 62 nets cuts benefits by about 25 percent for a lifetime. Several people think that they'll have to wait until 67 if born after 1960 if they don’t claim benefits at 62. After an individual turns 62, they can, at the beginning of any month, claim social security meaning 96 more chances until age 70 are given for someone to claim it. The life expectancy people estimate is usually too low also. Social Security benefits started in 1935. Back then, 61.5 was the average life expectancy. Now, that number is much higher on average. It's at 77 instead. When starting benefits at age 62, a person loses out. Somebody who starts at 70 will collect more before age 77 than the other person.



Getting Social Security early not the wisest choice



Some people take Social Security benefits early while they're nevertheless working in order to supplement income and keep health care coverage until Medicare kicks in at age 65. However Social Security benefits collected before retirement age are cut $1 forever $2 earned above $13,560 -- effectively a 50 percent marginal tax rate on income above that point. In order to invest for retirement in a few years, some people will collect benefits early. But Social Security benefits increase increase about 7.6 percent a year from age 62 to 70. There are not investments with that kind of return. There are not any without a lot of risk that is. Being patient is what matter. Keep remembering that. About $50,000 a year in Social Security payments can be given to a couple that makes $100,000 a year and has $500,000 in retirement and retires at age 62. If the couple waits until age 70, it will be even additional. It will be about $96,000 a year.



Information from



Smart Money

smartmoney.com/personal-finance/retirement/when-should-you-take-social-security-1299171485337



Science Daily

sciencedaily.com/releases/2008/09/080904145220.htm



Funny about Money

funny-about-money.com/2009/04/24/early-social-security-a-way-around-the-earnings-limit/