Social Security: The Risk Of Filing Later? #shorts
You’ve probably heard that delaying Social Security benefits can lead to a bigger monthly check. And that’s absolutely true! Waiting until your full retirement age (FRA) – or even age 70 – can significantly boost your payments. But what about the risk of filing later? Is there a downside?
In a nutshell, yes, there is a risk.
The biggest risk is simply time. We don’t know how long we’re going to live. Delaying benefits means forgoing income you could be receiving now.
Here’s the potential problem:
You die sooner than expected: If you delay benefits to maximize them but then pass away before you collect for a significant period, you’ll have essentially “lost” potential income. You might have been better off starting earlier and receiving smaller checks for a longer time.
So, what’s the takeaway?
It boils down to personal circumstances and risk tolerance.
Assess your health and longevity: Consider your family history and current health. Are there reasons to believe you might not live a long time?
Evaluate your financial needs: Do you need the income now to cover expenses? Delaying might not be feasible if you’re struggling financially.
Think about inflation: While Social Security has cost-of-living adjustments (COLAs), inflation can still erode purchasing power over time. Getting payments sooner provides some protection against this.
Delaying Social Security is a powerful strategy, but it’s not without risk. Carefully weigh your personal situation and consult with a financial advisor to make the best decision for your future.
Watch the full video here! https://youtu.be/E1kKxvHXCU0