As retirement approaches, the decision of when to claim Social Security benefits becomes crucial. Experts generally advise against claiming reduced payments at age 62 unless financial necessity or health issues are compelling factors. Waiting until full retirement age or even the maximum payout age of 70 is typically recommended, as benefits increase by 8% for each year of delay.
However, the value of time as an asset is often overlooked in the decision-making process. The authors, who started receiving Social Security at 62 due to unexpected circumstances, emphasize the importance of taking advantage of early retirement for a variety of reasons. They highlight the benefits of having more time to focus on important aspects of life such as health, reduced stress, and increased opportunities for travel and spending time with family.
Optimizing health is a key aspect of retirement planning, as it can help avoid costly long-term care expenses. Early retirement provides the opportunity to prioritize fitness and healthy eating habits, which can be difficult to maintain while working full-time. Other benefits of early retirement include reduced stress levels, increased social connections, and the ability to pursue activities and interests that may have been previously postponed.
Having more time to spend with grandchildren is another advantage of retiring early, as it allows for stronger connections and more frequent visits. Active travel is also made easier during the early retirement years, as the authors share their experiences of traveling to various countries before transitioning to a slower pace in later years. While delaying Social Security benefits may result in a higher bank balance, the authors emphasize the value of the memories and experiences gained during early retirement.
When deciding when to claim Social Security benefits, it is essential to consider your ideal retirement lifestyle and how you want to spend your remaining years. Planning for the different phases of retirement (Go-Go, Slow-Go, and No-Go) is crucial, as it can help you make informed decisions about when to retire and begin receiving benefits. Ultimately, prioritizing the activities and experiences that bring you joy and fulfillment is key in determining the best age to claim Social Security benefits.
