Читать книгу Social Security For Dummies - Peterson Jonathan, Jonathan Peterson - Страница 63

Maybe you doubt the wisdom of waiting to start collecting Social Security. Studies have shown that age 62 — the earliest age of eligibility — is the most common age for retirement claims. But is it the best? Taking the money as soon as possible may seem sensible — it’s a sure thing. You may need the money. Or you may have reason to believe you won’t live much longer because of a serious illness, for example. In such cases, the logic of claiming reduced, early benefits may be undeniable. But certain arguments in favor of early claiming are shakier. Here are a few of the less persuasive reasons to begin collecting benefits early:

 “I can make the money grow and come out ahead.” This is the economic principle that money today will be worth more tomorrow, through investments and a helpful boost from rising interest rates. You may be able to come out ahead, but there’s a guaranteed reward for collecting Social Security later — several percent a year between age 62 and your full retirement age, and 8 percent per year after that up to age 70. And remember: That’s on top of inflation protection. Years ago, retirees could, at the least, plunk down money on risk-free certificates of deposit (CDs) and look forward to steady gains. These days, CDs barely pay anything — and you’re aware of the uncertainties of the stock market. But maybe you’re blessed with financial savvy. Maybe you have the skill to outperform the markets year after year and the discipline to stick to your program. To come out ahead, that’s what you’ll need to do, especially if you live a long time. For most people, relying on a bigger Social Security benefit as a firm foundation of retirement security is easier.

 “I want a new life.” If you hate your job or you’ve been waiting for a chance to reinvent yourself (say, by launching a small business), a guaranteed Social Security payment may seem like just the ticket to get started. Of course, you should try to pursue your dreams. Just be aware that your interests may change and business ideas may fail.

 “I could get hit by a bus. Why leave money on the table?” Yep, you could get hit by a bus. But however fatalistic your view, the reality is that a 60-year-old man has a greater chance of dying in his sleep at 85 from various ailments than coming to an accidental finale much earlier. Why not make sure that you have the finances you need in the meantime?

 “I’d better get my share before Social Security goes bust and there’s nothing left.” This belief strikes a chord with some people. After all, you’ve been hearing doom and gloom about Social Security for years. But as a strategy for collecting your benefits, it’s a bad idea. Most proposed reforms would not hit retirees or near retirees. When Congress voted in 1983 to raise the full retirement age, for example, the impact came far in the future, affecting people who reached full retirement age in 2000 and beyond.

Things turned out differently than either Eager Edgar or Steady Betty planned. The point is that you can’t be sure how long you’ll live. When you’re deciding when to begin collecting Social Security, keep different possibilities in mind and consider the implications for your standard of living and sense of well-being.