Claiming Social Security Too Early

Question: Should you claim Social Security as soon as you’re eligible?

Michael Zaino
President & CEO, TZG Financial in Charlotte, NC

Claiming Social Security Too Early
November 14, 2017

Answer: Several factors come into play, but if you are relatively healthy for your age and do not need the additional income as soon as you are eligible, each year you delay receiving your benefits adds 8% compound interest to the amount you’ll eventually receive. Over time, this additional income adds up!

If you were born between 1943 and 1954, your full retirement age is 66. Simply delaying taking payments until age 70 will net you 132% more every month. To talk numbers, if you are set to receive $1800/month at age 66, by delaying just 4 years you would receive $2376…a $576 difference. Imagine what you could do with an extra $576 every month, for the rest of your life! Taking Social Security too early could easily end up costing you over $100,000 over the course of your life if you live into your mid-80’s.

If you are older than your spouse by a few years and earned more income while working, it may be prudent to turn on her Social Security at age 62 in order to delay taking yours. If you pass away first, the lesser of the two amounts goes away and she’ll begin drawing your benefit amount.

Side note – if you do decide to delay receiving your Social Security, make sure you sign up for Medicare as soon as you’re eligible, since rates are based on age (along with health).

Bio: As the President and CEO of TZG Financial, Mike is doing what he professionally loves the most: building relationships and providing his clients with financial security. Mike has been featured in many publications, including Money, US News & World Report, The Huffington Post, Time, Reader’s Digest, Men’s Health, MSN and Yahoo Finance. He is a verified Top Contributor on, and is a member of both the National Ethics Association and the National Veteran-Owned Business Association.


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