You’ve worked hard for many years, paying into the Social Security system, and now you’re approaching retirement age and would like to draw your benefits. I’m often asked by clients if it would be wise for them to start taking their Social Security payments, and like many answers to financial questions, it depends.
There are several factors to consider that can guide you to the right answer for your particular situation. Take a look at some of these factors to determine the best course of action for you.
1. Remember that the longer you wait, the larger your payments.
According to the Brookings Institution, in 2009, 42% of 62-year-olds claimed benefits, up from 38% in 2007. Clearly, more and more 62-year-olds are taking advantage of their Social Security benefits earlier than in previous years. But is this the best decision? What do you think?