You may have heard that every year you delay claiming Social Security past full retirement age, your monthly benefits increase by 8%. Benjamin, a retired 73-year-old from Florida, followed this advice. However, he came to realize he probably should’ve taken another path.
Below, he explained why he now regrets the timing of when he claimed his benefits.
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You Could Be Overestimating Your Good Health
At 65, Benjamin felt strong and healthy enough to work a few more years before retiring. He became even more convinced when he heard that doing so could mean bigger checks.
“I told myself I’m in great shape and can work a few more years to let my benefits grow,” he said. However, life had other plans. By the time Benjamin turned 68, his health began to decline.
“What started as occasional back pain turned into a chronic issue that almost limited my mobility,” he said. Specialist visits, prescriptions and unexpected hospital stays drained his retirement savings faster than he expected.
You Didn’t Realize How Much You Need the Income
Benjamin felt confident in his financial situation, so he delayed his retirement. He believed his savings would cover all his expenses.
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“Why claim Social Security now when I can delay my retirement and get a bigger check later?” he thought.
But inflation crept up, everyday items became more costly and Benjamin’s savings didn’t stretch as far as he had hoped. Unexpected expenses kept popping up, from urgent car repairs to prescriptions. He kept pulling from his savings, thinking the economy would stabilize.
You May Miss Out on Enjoying Early Retirement Years
Many retirees want time to do the things they have put off for years and explore new hobbies. Benjamin missed out on these experiences because he worked longer for a bigger Social Security check.
“I had friends who picked up new hobbies and traveled a lot because they claimed Social Security at 62 and had that extra income,” he said.
Benjamin thought he’d catch up later, but at 72, his health wasn’t as strong. He regreted not filing early to create memories while he still could, knowing life is unpredictable.
You Could Cause a Negative Impact on Spousal Benefits
Benjamin thought delaying Social Security was a smart move, but he didn’t realize how it would affect his wife, Elizabeth.
“My nonworking wife was counting on spousal benefits,” he said.
At first, they thought they could manage with their savings. However, their financial cushion thinned over the years and Elizabeth made sacrifices she never expected. She had to find a job to help cover bills and other urgent expenses.
Whether you plan to collect Social Security benefits early, at full retirement age or late, you’ll want to consider your whole financial picture and budget before doing so.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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