Taking Social Security Too Early
Many people may have heard that they can claim benefits when they turn 62- a lot of people erroneously believe they have to claim them at this age, but that’s another story entirely!
But what happens if you’re born after 1959? Well, in that case, you’ll see a 30% reduction of your benefits if you claim at 62, and this decrease is permanent. This means you’ll be stuck with it for your entire retirement.
So, does it make sense to retire at 62? Not really, especially if you’re in good health and expect to live a long retirement because that’s when your money will be stretched thin. So if you can work, you should try to work a little longer in order to maximize your nest egg.
For example, if you wait until you’re 70, you’ll see an 8% increase to your benefits each year that you keep on working.