Want a bigger Social Security check? Just wait till you're 70!

Claiming your Social Security Benefits at age 62 may sound great - but you could lose a lot of money in the next years. Waiting till you're 70 years old to collect your Social Security is recommended - even though you can start at 62. Mark Gardner of RetireWellDallas says there IS a penalty though. "They can receive it at 62, but - they will have to take a 25% haircut!" If you were born after 1943, every year after your 62nd birthday that you postpone collecting it, there's an 8% increase in your check. Gardner asks people, "Where can you get an 8% raise on your money plus cost of living? The [2023] cost of living adjustment [raise] will be over 8%. You just made over 16% by not taking your Social Security right now!"

Come January, People on Social Security will Get a Raise!

If you are still working and younger than 62 - Gardner says to save as much as you can now and postpone receiving as long as you can. "There are probably over a third of Americans who take their Social Security payments at the age of 62 - because they don't have enough in savings." Social Security Administration says only 10% of Americans wait to collect benefits at age 70. Their median gain in the present value of household lifetime discretionary spending is over $180,000!

The National Bureau of Economic Research says - Americans are notoriously bad savers and many need the money as young as 62.


Active retirees enjoy the sunset on Siesta Key beach FL

Waiting till you're 70 to collect Social Security adds many thousands of dollars to your retirement.Photo: Getty Images

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