Social Security: 3 disadvantages of waiting until age 70 to retire

When you search get the biggest Social Security retirement benefit check, Most people decide to wait until age 70 to apply. The program rewards beneficiaries who wait to begin collecting their benefits and offers up to 8% for each year you delay your full retirement age, or FRA for its acronym in English. But it is important that you consider that Delaying your retirement until age 70 could have some disadvantages.

Although Retirement benefits peak at age 70, and in most cases, waiting to claim maximizes lifetime Social Security income, it also comes with some considerable costs. Here we leave you 3 disadvantages of waiting until age 70 to claim your Social Security retirement benefits.

1. You may have already maximized your profits

We must take into account that Not everyone maximizes their monthly retirement benefit by waiting until age 70.. For example, if you are the lower-earning spouse and plan to receive spousal benefits, you may want to claim your benefits once you reach full retirement age, as that is when your benefits reach their maximum.

Spousal benefit recipients receive up to half the benefit to which their partner is entitled at full retirement age. If you earned much less than your spouse, that could be a larger benefit than you would receive based on your own earnings history, even if you wait until age 70.

But take into account that To receive spousal benefits, your partner must also have applied for Social Security benefits. If your spouse is still waiting to claim benefits, it often makes sense claim your own benefit at full retirement age and then switch to spousal benefit later; This is how you should maximize your lifetime Social Security income.

2. Pay for Medicare out of pocket

If you no longer work and receive employer-sponsored health insurance, you must enroll in Medicare at age 65. Most people with Medicare are automatically enrolled in the government program when they turn 65 because they have applied for Social Security benefits. The government also automatically deducts Medicare Part B premiums from your Social Security check..

But how You will not collect your benefits at age 65, you will have to enroll manually and what’s more, you will have to find the money within your budget to pay your premiums, which for Medicare Part B start at $174.70 per month. That amount goes up if you have an adjusted gross income that exceeds $103,000, or $206,000 for a married couple.

These premiums can be a headache for your monthly retirement budget if you’re not prepared to pay them. That is why it is important to plan for this expense if You plan to delay your claim for Social Security retirement benefits beyond age 65.

3. Your life expectancy

Although Data indicates that delaying retirement until age 70 is the best option, not everyone will maximize their lifetime income of Social Security. The reality is that some people will live long enough to more than make up for the benefits they gave up at age 60… and others won’t. The issue is that there is no 100% certain way to know which group you will belong to.

But you can make a good guess. If you have taken care of your health, do not have a family history of concern, and your doctors constantly tell you that everything is going very well, the best thing you can do is wait. But if on the contrary your health is not very good, there is a family history of premature deaths, you might better consider applying earlier. This decision could give you the money you need to manage your health problems now and lead a more enjoyable life.

Keep reading:
– Study revealed that baby boomers are approaching retirement age without enough savings
– Social Security: this is the money that corresponds to you if you retire at age 67
– Social Security could make some changes to your payroll: here’s what you should know