Claiming Social Security Early: Why It’s Necessary
A study by the Center for Retirement Research found that most women retire the moment they hit 62, and this figure has remained unchanged for a decade (Source: crr.bc.edu). It’s no surprise that 44 percent of women file for benefits as soon as they hit 62. Many people believe that claiming Social Security early is not good for finances. But emergencies do occur, and when that happens, a retired woman, who is solely dependent on her Social Security income, will need all the help she can get. It could be that she has an ailment that requires medical attention or she might have pressing financial concerns. No matter what the cause, claiming Social Security early is not a bad idea. In fact, it depends a lot on personal circumstances. Plus, given how most women lack other sources of income during retirement, this might be all that they can muster in case of an emergency.
Apart from the obvious increase in available cash, Social Security also brings in many intangible benefits such as personal happiness and the ‘power’ to follow the little dreams of life that one may be often able to ‘buy’ because of a secure cash flow. Many retirees would love to have a leisure that they may use doing something they love such as gardening, painting, or even traveling.
Knowledge Is Power
A woman who possesses in-depth knowledge of Social Security will find it easier to create a personal retirement plan. That’s why it is important to conduct as much research into the subject as you can. Also, make it a habit to check your Social Security statement online every year, so you get a better idea of the disability and retirement benefits you will receive. This document also serves as a handy record of your lifetime earnings history.
Social Security Restrictions: What You Should Know
In 2016, female beneficiaries who claimed social security benefits of any kind while resuming work lost out on for every they earned more than ,720. But in the months leading up to their 66th birthday, these women got the advantage of an increased earnings limit. Hence, women who claim Social Security before the full retirement age are still eligible to receive all available benefits.
Surviving divorcees and spouses born on or before 1st January 1954, however, are exempt from the rules laid down by the Bipartisan Budget Act of 2015, which means they are free to claim retirement benefits first and survivor benefits later, or vice versa. This lets them decide on the arrangement that provides better benefits for the rest of their lives.
Everybody can learn a thing or two on how to claim Social Security retirement benefits the right way, but it is especially valuable for women. In fact, women should pay more attention to Social Security than men due to greater life expectancy. After all, outliving their sources of income is a major concern for retired women.