The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

Should You Apply for Social Security Benefits Now or Later?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Retirement
Reading Time: 2 mins read
apply for social security
8
SHARES
129
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Q: Hi Lynnette, I am 65, still gainfully employed; in great health but, heavily in debt with student loan debt and installment loans.

I plan on working another three years. Would it make sense to apply for Social Security benefits now, to pay down on my debts or, still wait another 10 months, when I am 66, and eligible for full benefits?

 A: Given your debt situation, and the fact that you plan to still work another 3 years, I would definitely say wait to claim your Social Security benefits.

Generally speaking, for every year that you delay taking Social Security, you will increase your Social Security benefits by about 8%. In your case, since you’ll be 66 in 10 months, you’ll be effectively adding roughly $2,000 a year to your annual Social Security benefits.

$2,000 is a nice chunk of extra money to get at any point. But over time, the financial advantage of just waiting becomes more magnified. By age 76, you’ll reap an additional $20,000 (not adjusted for inflation or any increases in Social Security), just by delaying taking receipt of your Social Security benefits.

The trade off, of course, if how much money you’ll be paying in credit card interest over time. That depends on how much debt you have and the interest rate on that debt. You didn’t indicate those factors, so it’s hard for me to make a financial comparison there.

Regardless, I wouldn’t want to see you simply use your Social Security benefits just to pay off educational loans and installment debt. A better strategy is to use the earned income you’ll generate over the next year — and if necessary, over the next three years that you plan to start working. Tweak your budget if necessary to free up cash flow and start making extra payments on that college debt and those installment loans too.

But overall, I’d say wait to claim your Social Security benefits. That will provide a much bigger payoff in the long run.

Oh, and there’s one other big benefit to waiting. You didn’t say if you are married. But if you are married, then delaying your receipt of Social Security benefits has one other huge upside: Not only does it maximize your Social Security payout over your lifetime, it also greatly increases the survivor benefit that your spouse (if any) would receive when you pass away.

I hope this information helps. Good luck to you.

Tags: apply for social security benefits
Previous Post

Is Privacy an Illusion?

Next Post

A Quick Primer on How to Live on the Minimum Wage

Lynnette Khalfani-Cox, The Money Coach

Lynnette Khalfani-Cox, The Money Coach

Lynnette Khalfani-Cox, The Money Coach, is a renowned financial expert, author, speaker, and media personality, empowering people to achieve financial success.

Related Posts

mixed race senior citizens reviewing budget

Budgeting for Senior Citizens: How to Live Well on a Fixed Income

by AskTheMoneyCoach

As we age, managing finances becomes increasingly important, especially when living on a fixed income. It's crucial to budget wisely to maintain a comfortable lifestyle in your senior years. Here, we share some essential tips for senior citizens to live well within their means. Reduce Expenses One of the primary...

Retirement Planning- 5 Secrets to Retiring Rich

Retirement Planning 101: Five Secrets to Retiring Rich

by Guest Blogger

When you think of walking out of the office for the last time—or dialing down your entrepreneurial dealings—how do you envision life to be? Is it filled with travel plans, new business ideas, or moving to that Italian villa? Whatever your plans are, you want to ensure you aren’t just...

Prepare for retirement in 20s, 30s, 40s, 50s

How to Prepare for Retirement in Your 20s, 30s, 40s, 50s and Beyond

by Guest Blogger

Whether you're 25 or 55, you've likely come across countless articles talking about how to prepare for retirement. While the advice may be well-thought-out, and even helpful, it can be overwhelming.  You have to plan for a future you are decades away from facing. A lot can happen on this...

retirement-no-money

Five Ways to Avoid Running out of Money During Retirement

by Guest Blogger

The goal of retirement is to have enough money to live out the rest of your days comfortably. However, what happens if your spending outpaces your retirement income? Statistics are showing that having enough money to rely on for the entirety of retirement can be a challenging feat. According to...

Financial Stress

5 Ways Procrastination Can Lead to Financial Struggle

by Guest Blogger

Have you ever waited until the wee hours of the morning to study for an exam at the very last minute? Or you didn’t make a dentist appointment until you found out you had a cavity? We can all be guilty of procrastinating. It’s easy to save something for tomorrow....

retirement savings

Should You Use Retirement Savings to Pay Off Debt?

by Lynnette Khalfani-Cox, The Money Coach

Q. I am a 61, single parent, and can’t seem to come up with a strategy to get out of debt. Is it ok to take a loan from a pension fund?  Also, a debt solutions company advised me to cut up all credit cards.  Considering I have a child,...

rising healthcare costs

The Shocking Financial Threat to Retirees

by Lynnette Khalfani-Cox, The Money Coach

Retirees on a fixed income often have a hard enough time making ends meet, often due to a lack of savings. Now a new survey suggests that many retirees – especially those relying on Social Security – are about to be further endangered by another financial threat: skyrocketing healthcare costs...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1534 shares
    Share 614 Tweet 384
  • What to Do if Your Spouse Stole Money From You

    1316 shares
    Share 526 Tweet 329
  • What to Do If You Can’t Afford to Leave Your Spouse

    1283 shares
    Share 513 Tweet 321
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1134 shares
    Share 453 Tweet 283
  • What Do All Those Strange Codes In My Credit Report Mean?

    904 shares
    Share 362 Tweet 226
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    876 shares
    Share 350 Tweet 219
  • Do This Now If Your Wages Were Not Reported

    857 shares
    Share 342 Tweet 214

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist