Even if you’ve already reached FRA, if you’re still working at the start of 2022 and plan to continue working the entire year, you may not need the money from your benefits to pay your expenses. And in that case, it could pay to delay your Social Security filing for a larger benefit for life. Having a higher benefit could buy you more financial freedom down the line, even if you’ve saved decently for retirement and expect to maintain a fairly modest lifestyle.
3. Am I happy with my retirement savings?
Many people near the end of their careers with millions of dollars socked away in an IRA or 401(k). If that’s the position you’re in, congratulations. And also, if that’s the case, you’re probably free to claim Social Security whenever you choose, since those benefits will most likely constitute just a small portion of your total retirement income.
But if you’re not thrilled with your retirement savings balance, then you may not want to claim Social Security this year — not if you have the option to delay your filing and grow your benefits even more. Even if you hold off on signing up for a single year beyond FRA, that will still result in an 8% boost to your benefits. That’s a pretty decent guaranteed return.
What’s the right move for you?
Claiming Social Security in 2022 could work out well for you. Or, it’s a decision you might end up regretting. If you’re not sure whether to file this year, take the time to run through the above questions. Doing so could help you approach your choice with more confidence.
