Key PointsIt is crucial to consider the timing of your Social Security filing.Evaluate your savings before making a decision.Take into account your health and your spouse’s needs when making financial choices.A cash back credit card can provide significant benefits, earning you hundreds or even thousands of dollars annually for free. Our top recommendation offers up to 5% cash back, a $200 bonus, and no annual fee. Click here to apply now. (Sponsor)One of the most important financial decisions you may face in retirement is determining when to claim Social Security. You can start receiving your full monthly benefit at full retirement age (FRA) without reduction. Delaying your claim past FRA will increase your benefits by 8% each year until you reach 70. On the other hand, filing before FRA will result in reduced benefits for life.Given the weight of this decision, it is essential to carefully consider your options. Before signing up, ask yourself the following key questions:1. How much annual income can I generate from my savings?While your retirement account balance may appear substantial, you must consider how long those funds will need to last. Calculate the annual income you can expect from your savings to determine how much Social Security you will need to supplement your retirement income.2. What is my life expectancy?Delaying Social Security can be beneficial for individuals with a long life expectancy, while those in poor health may consider filing early to maximize lifetime income. Evaluate your health and lifestyle factors before deciding on the optimal filing age.3. Is there a spouse who will rely on survivor benefits?If your spouse depends on your Social Security benefits after your passing, it is crucial to plan accordingly. Consider filing for benefits at or after FRA to ensure a stable income for your spouse. Discuss this decision with your spouse and seek guidance from a financial advisor to fully understand the implications of your filing choices.
