While it is generally recommended to delaying Social Security benefits claims for a larger payout, there are situations where enrolling early can be beneficial. Despite understanding that delaying Social Security benefits would result in higher monthly payments, 40% of non-retired Americans still plan to claim their benefits before reaching full retirement age.
A growing number of Americans are choosing on not delaying Social Security benefits claims. Find out the reasons behind their decision.
The listed reasons are according to the According to 2,000 U.S. survey respondents from ages 27 to 79, regarding their decision to claim Social Security earlier rather than later, MoneyTalks News says.
Reasons Of Not Delaying Social Security Benefits
- Social Security might run out
Many Americans refused on delaying Social Security benefits claims. A recent survey found that 44% of non-retirees are planning to claim Social Security early out of fear that the program may run out of money and stop providing payments. Despite the irrationality of this concern, fear remains a strong motivator for these individuals of not delaying Social Security benefits claims.
- Need of Money
Approximately 36% of non-retirees who are not planning on delaying Social Security benefits claims because they cannot live without this Social Security benefit. Some don’t have the choice of delaying social security benefits claims as they rely heavily on Social Security as their main source of income. In some cases, people may even depend entirely on Social Security for their financial needs.
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- Immediate Access To Their Own Money
Around 34% of non-retirees don’t plan on delaying Social Security benefits claims because they want to access the benefits they have earned over the years, as they feel the government has already taken a significant portion of their income from each paycheck.
- Advised to claim earlier than age 70
Around 13% of non-retirees don’t plan on delaying Social Security benefits claims although they are aware that delaying Social Security benefits will result in a higher monthly benefit. However, there are instances where not delaying Social Security benefits can be more beneficial before reaching the age of 70. Therefore, it is possible that financial advisers and experts may suggest taking advantage of these circumstances and start receiving benefits earlier.
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