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Deciding when to apply for Social Security benefits can be a daunting task. Some choose to submit early, while others think it is better to wait.
However, according to recent analysis, the choice is relatively easy. Apply for benefits at the age of 70.according to an analysis by the National Bureau of Economic Research.
Using 2018 and 2019 consumer data from the U.S. Census and Federal Reserve as a starting point for analysis, the study authors said:
“We found that virtually all American workers between the ages of 45 and 62 should wait to withdraw past age 65. More than 90% should wait until age 70.”
Despite this fact, only 10.2% of retirees are waiting to receive their pension until age 70, the authors say.
Those who do not wait until age 70 to receive benefits lose $182,370 ($2022) in median lifetime discretionary household spending. Simply put, waiting until her age of 70 to apply for Social Security would mean that her lifetime spending would jump by 10.4%.
The authors emphasize that the best time to apply for Social Security depends on household characteristics, and some people are better off applying early. But in general, it’s almost always better to wait.
When should I apply for social security?
As the study authors point out, many people can benefit from waiting to apply for Social Security. This is a strategy I highlighted earlier in 7 Reasons He’s 62 and No Social Security.
However, some people are better off getting Social Security early. For example, other reports suggest that if either you or your spouse are in poor health and are expected to have a short life expectancy, it may make sense to start benefits early. I am pointing out that
For more information, see 5 Ways to Claim Social Security Early.