Are You Considering Collecting Social Security At 62? Suze Orman Says Delaying Can Lead To A 76% Payout Increase

Planning for retirement is a journey filled with important decisions. One of the most critical choices to make involves deciding when to start taking Social Security benefits. While the benefits of early or delayed claiming are debated, each person's situation is unique, making this decision even more significant.

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The 2023 Schroders U.S. Retirement Survey uncovers hesitation among non-retired Americans regarding when to claim Social Security benefits. Only 10% plan to delay until age 70 to maximize their payments. This reluctance stems from a broader crisis of confidence in the Social Security system, as highlighted by Deb Boyden, Head of U.S. Defined Contribution at Schroders. The apprehension surrounding the system's reliability is leading to potential financial losses for American workers.

In a discourse on the matter, financial expert Suze Orman emphasizes the significance of postponing Social Security benefits to the latest possible age if your health and financial circumstances allow it. In an Oct. 2, 2023, LinkedIn post, Orman points out the financial advantages of delaying benefits. 

Suze Orman emphasizes the importance of timing when claiming Social Security benefits, particularly for those in good health. She points out that a 65-year-old, non-smoking woman has a 50% chance of living until 88, while for men, the age is 85. Waiting until 70 to start collecting Social Security can significantly increase payouts by 76%, offering considerable financial support in later life. 

Orman challenges the notion of a break-even point, explaining that by age 81, individuals who started collecting at 70 would have received more from Social Security than if they had begun at 62.


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Orman further advises on the importance of strategy within households, particularly for married couples. She underscores that upon the death of one spouse, the survivor receives only one benefit — either their own or that of their deceased spouse. Consequently, it's vital for the higher earner to defer benefits until 70, ensuring the surviving spouse has access to the maximum possible benefit.

Highlighting the flexible window for claiming Social Security benefits, Orman points out that Americans can initiate claims any time between ages 62 and 70. Each month's delay in claiming not only increases the payout but also secures a higher monthly benefit for life. 

Given the complexity of navigating Social Security benefits and retirement planning, consulting a financial adviser becomes indispensable. A professional can analyze individual circumstances, run precise calculations and offer personalized advice tailored to meeting retirement goals. Whether considering delaying Social Security benefits or contemplating continued employment, a financial adviser plays a crucial role in devising a strategy that aligns with your financial objectives, ensuring a stable and secure retirement.

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*This information is not financial advice, and personalized guidance from a financial adviser is recommended for making well-informed decisions.

Jeannine Mancini has written about personal finance and investment for the past 13 years in a variety of publications including Zacks, The Nest and eHow. She is not a licensed financial adviser, and the content herein is for information purposes only and is not, and does not constitute or intend to constitute, investment advice or any investment service. While Mancini believes the information contained herein is reliable and derived from reliable sources, there is no representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the information.

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