Via AOL Blackvoices:
A very informative article from CBS MoneyWatch.com explains how to double your Social Security benefits during retirement. In a nutshell, the story makes the case for waiting just a few years to claim that Social Security check in order to reap a huge financial benefit.
According to an example outlined in the article, a 62-year-old man who retires this year, and was earning $80,200, stands to collect a Social Security check of $1,458. That’s just a third of what he’d receive, however, If he waited to retire until age 66. At that point, his Social Security payout would climb to $2,157 a month. By exercising just a bit more patience and forgoing his Social Security until age 70, this retiree could collect a monthly Social Security check of $3,303 — twice the amount that he’d get at age 62.
This hypothetical scenario is a powerful illustration that shows the financial benefits of delayed gratification.
Unfortunately, too many of us simply can’t wait for things in the future — whether that’s buying things on credit now because we don’t want to wait to save up money for that purchase, or waiting to collect a bigger Social Security payoff in our later years.
According to CBS MoneyWatch.com, 70% of all Americans collect their Social Security between age 62 and 67.
As you plan for retirement, think about the age that you’re likely to leave the workforce, and then see if you can hold off before tapping into Social Security. The economic windfall you will reap by getting a bigger Social Security check for the rest of your life will likely far outweigh the five to eight years worth of payments you will forgo if you retire between the ages of 62 and 65.