Episode 77: 5 Smart Reasons to File Early for Social Security

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This week, Devin talks about good reasons to file for Social Security at age 62. Every situation is different, and some folks will benefit more if they file later, but there are many people for whom it makes sense to file early.

If You Need The Income

A lot of people stop working before they planned to stop working. If you’re not working, and you have a shortage of income, filing for Social Security just makes sense. But don’t forget that you aren’t required to start taking Social Security benefits just because you have stopped working. If you have other assets, it may make sense to use those assets first.

If you are not working because you are disabled, you should also apply for Social Security disability benefits, because the disability amount will be more than the amount of regular retirement benefits taken before your full retirement age.

If You Are Single and Have Health Issues

If you’re not married, then you don’t need to consider the impact of your filing age on your spouse’s eventual benefits. For this reason, a single person who has health issues may want to go ahead and start taking their benefits early.

Issues Related To Your Spouse’s Benefits

If your spouse is the higher earner and they have health issues, you may just need to file for your own benefits early. At their death, you are going to get the larger survivor benefit regardless of when you started taking your own benefit.

If your spouse is the lower earner and older than you. If your spouse is the lower earner, it is possible that their spousal benefit based upon your work record is more than their own benefit. In that case, you may want to go ahead and file so that your spouse can start receiving that larger spousal benefit.

Survivor Benefits

If you are eligible for a survivor benefit, you can file for the survivor benefit earlier, and then later you can switch to your own benefit. Doing this can let your retirement benefit grow. You have to be very specific when you file for this benefit, because the default is to file for all your benefits at one time. Also, some Social Security employees don’t understand that you can do this.

Minor or Disabled Children

If you have minor or disabled children at home, they are entitled to a benefit based upon your work record. However, they are not able to collect that benefit until you start receiving your benefits. Once you start collecting your retirement benefits, your total family benefit will be significantly larger than just your individual benefit. This changes the math of when you should start taking benefits, and it may make sense for you to file earlier.

Highlights:

Why Barron Trump is eligible for Social Security benefits

How the survivor benefit is still eligible for benefit switching

Resources mentioned in this episode:

Devin’s YouTube channel

3 Stupid Reasons To File For SS At Age 62

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