Why does social security board view your claim full#
However, while it's common for workers to claim their Social Security benefits at 62 because they can't work any longer, those who have to leave work should consider applying for unemployment or Social Security Disability to delay claiming retirement benefits until full retirement age. If you're forced out of work before you're ready, you may have no choice but to claim Social Security so you'll have money. Just under a quarter of workers actually retired early due to the fact they could afford to do so the rest were forced out. Primary reasons for leaving the workforce early included company restructuring that left a worker with no job, disability, or health problems. Unfortunately, just four percent of current retirees were actually able to keep working until 70 or later, while 77% of current retirees left the workforce before age 65. In fact, according to Employee Benefit Research Institute, four in 10 workers want to wait until at least age 70 before retiring, compared with only 26 percent of workers who want to retire before age of 64. Forced early retirement makes claiming early a necessityĪlthough 62 is the most popular age to claim benefits, most people don't actually want to retire young. If your income is higher than your spouse's and you delay claiming Social Security, your spouse can receive a higher survivor's benefit than if you'd claimed at 62. The Center for Retirement Research estimates that while a widow needs around 79% of the couple's combined income to maintain the same living standard after a spouse's death, widows typically are left with just 62% of combined income. The death of a spouse is a major financial shock for many retirees. However, if you're married, you also have to consider your spouse. You can use this chart to give you an idea of how long it will take you to break even for delaying benefits, or do some simple math to calculate your break-even point based on your own projected benefit amount. Of course, it's impossible to predict the future, but if you're in poor health or if people in your family generally pass away early, claiming Social Security at 62 may be a financially sound strategy. If you don't think you'll live long enough that your higher monthly Social Security benefits equal or exceed what you're receiving from Social Security during the early years of retirement, claiming early actually makes financial sense. When you delay claiming Social Security benefits, you miss out on years of income and it takes time to break even from foregone benefits. While claiming Social Security benefits means you'll receive a smaller monthly income, this doesn't always mean the total amount of benefits received will be smaller. Poor health means claiming early makes sense