Why It’s Better to Wait Before Claiming Social Security Benefits

When you first begin your career, Social Security might be the furthest thing from your mind. It’s just one more hefty deduction taken out of your paycheck — or so it seems.

In reality, Social Security is a significant part of retirement financial planning for many people. As we pay into Social Security throughout our working lives, we’re investing in our future selves. You’re building up a fund that you’ll have access to once you retire and stop working, or at least stop working so much.

The decision to claim Social Security in retirement is an important one, and so is the decision of when to claim your earned benefits. While it might seem like a bit of a no-brainer to claim your benefits as soon as you’re legally allowed, that might not always be the case. In fact, delaying your Social Security payments might be beneficial for a number of reasons, including some not-so-obvious benefits.

Understanding Social Security Basics

Before we can fully understand those benefits and what they mean for you, let’s review the Social Security basics. Look at it from the perspective of someone who’s closer to retirement than to the start of their career. This overview will involve a few unfamiliar terms and acronyms, but the basics aren’t all that…