If you’re like many other seniors, then you social security is a financial lifeline that ensures a certain amount of monthly income after retirement. While the political wrangling over this income has many seniors wondering if their loved ones will receive this stipend, it is still a benefit enjoyed by millions around the country. However, while it is beneficial, it is also a complex financial topic. There’s a great deal to consider from how being married – or divorced – affects your social security income to how to budget in order to live comfortably each month.
While there is much to learn about social security, there are some things that many seniors don’t know. Here’s one social security secret that will absolutely blow your mind: if you wait until 70 to being drawing on these benefits, your payout will be 76% higher than if you take the benefits at 62!
This means that someone drawing $1,300 a month at age 62 would get roughly $988 more each month by waiting an additional eight years to start drawing their social security stipends. Some seniors have saved enough towards retirement for the extra money to make a fairly insignificant difference, but for most, an extra $1,000 a month would make like much more comfortable.
For seniors on a fixed income, this can be a boon that make the difference between simply having enough to pay bills and having some extra money for fun. After all, what’s the point of saving towards retirement and paying into the social security system if you don’t have the extra income to have some fun in your older age?
However, financial experts do point out that this is a gamble. As such, there are a few things to keep in mind when taking advantage of this secret. For instance, seniors that are not in the best health might want to consider drawing their social security at age 62. Moreover, it is important to consider your financial situation. Many seniors retire and simply are unable to make it on retirement savings and/or a pension alone. This opportunity is best utilized for those that can wait the extra years and would benefit from the added money each month. As people begin to live longer and healthier lives, this is a viable option and one of the best kept secrets regarding social security income. Even waiting until age 66 is a benefit as payouts are 32 percent more.
Bottom line is that if you are retiring at age 62 and want to draw your social security, that’s certainly fine. However, if you are able to stretch it out a few years to ensure that you get even more money each month, there’s a financial benefit to doing that as well. Working with a financial consultant can help to alleviate some of these concerns and ensure that you are handling everything in such a way that works to your overall benefit.
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