When Should You Take Social Security? Sister Faces Tough Retirement Choice

A woman turning 67 next year faces a decision millions of Americans struggle with: should she claim Social Security now or wait until age 70?

Here's what's at stake. If she waits three more years, her monthly Social Security checks (government retirement payments) will be 24-30% bigger for life. But that means giving up three years of payments she could receive starting now.

The math works like this: • Claiming at 67: She gets smaller checks but receives them for more years • Waiting until 70: She gets bigger checks but misses out on 36 months of payments • The "break-even" point (when total payments equal out) is typically around age 82-83

Since her family tends to live long lives, waiting might make sense. If she lives past her mid-80s, she'll collect more money overall by waiting.

The good news? She has savings she can use while waiting. She can withdraw money from her investment accounts (money she's saved and invested over the years) to cover expenses until age 70.

Most Americans don't wait - over half claim Social Security early, accepting permanently reduced benefits. Why? Some need the money immediately. Others worry the program might run out of funds (it's projected to face shortfalls by 2033).

The bottom line: If you expect to live into your late 80s or beyond and have other money to live on, waiting until 70 often pays off. But if you need the income now or have health concerns, claiming earlier makes sense.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/we-have-longevity-in-the-family-my-sister-is-turning-67-should-she-wait-until-70-to-claim-social-security-812087a4?mod=mw_rss_topstories