When it comes to financial planning in many instances the more conservative route is going to be the more fruitful one. Some people feel as though the ideal is to retire as soon as possible, but you may want to consider a different approach and exercise some patience.
In a perfect world you would have accumulated sufficient resources to retire without concerning yourself with your Social Security benefit at all. Unfortunately, few of us live within this realm. The vast majority of Americans will rely on Social Security to one extent or another as retirees.
It is important to understand the fact that you do not have to retire when you reach the age of full eligibility, which is either 66, 67, or somewhere in between if you aren’t yet eligible for the program. You can choose to continue working while delaying your application.
This will result in the accumulation of delayed retirement credits. You can accumulate these credits until you are 70 years of age.
Your benefit will rise by 8% for every year that you decide to delay applying after you become eligible for your full benefit.
This larger benefit can result in a significantly improved quality of life during your retirement years.
Plus, you may earn more money during those final working years than you did at some point earlier in your life. An individual’s Social Security benefit is based on his or her highest 35 earning years.
As a result you would be increasing your benefit on another level if you did in fact push these lower earning years out of the equation.
The O’Brien Law Firm, LLC is a member of the American Academy of Estate Planning Attorneys.
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