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Higgins Capital Management, Inc.

The 3 Top Reasons to Take Your Social Security

When to apply for social security is a decision that all Americans eventually make. Ultimately the decision is very personal in nature. 

In this post we’ll explore three reasons that many people consider in their decision of when to apply for Social Security benefits.

Watch the video here:

We all know that, in general, the longer you wait, the larger your Social Security benefit will be. 

The earliest you can apply for Social Security is age 62. The Full Retirement Age (FRA) depends on the year of your birth. For those born before 1943, the FRA is 65. The FRA gradually increases for those born in subsequent years, reaching 66 for individuals born between 1943 and 1954. It continues to increase by a few months for each birth year until it reaches 67 for those born in 1960 or later.

Most advice is focused on the dollar amount of the monthly benefit you’ll receive.

While this is true, the focus on the dollar amount of your benefit, ignores the most important question. What … do … you … want?

So here are our Top 3 Reasons: First, you need it, Second, you want it. Third, you’re concerned about how long you’re going to live.

Life is full of uncertainty. Money comes and goes. We all know people who have fallen on hard times. We all know that even billionaires can go broke. 

So, our First Top Reason for applying for Social Security is because you need it ... You need it, so take it and don’t look back! Take Social Security as early as possible and use it to keep moving forward.

Our second Top Reason for taking Social Security is because you want it. If you want it, you want it. You’ve contributed to the system during your working life. Social Security is a benefit that you’ve earned. If you want it, it’s yours for the taking. Take it. You don’t owe an explanation for why you don’t care about increased benefits later. You’ve earned the benefit. Take it and don’t look back.

Our Third Top Reason for taking Social Security is because you don’t think you’ll live long enough to enjoy higher benefits in the future. We all understand that no one knows your health better than you. We all understand that one knows your family medical history better than you. If you are aware of health problems that may become terminal, why wait for a future that may not exist. Having the tangible benefit of your social security, today, is more valuable than waiting for a future that may never come. If your family medical history points to deaths that are predominantly around a certain age, this is a compelling reason not to wait for a specific benefit amount. Take the benefit and don’t look back.

While specific numbers are difficult to determine, approximately 35% of Americans take Social Security at age 62.

The information contained in this Higgins Capital communication is provided for information purposes and is not a solicitation or offer to buy or sell any securities or related financial instruments in any jurisdiction. Past performance does not guarantee future results.