Many seniors worry whether they claimed their benefits too early. Maybe an early retirement adversely affected your long term financial security.
Was it a mistake claiming Social Security benefits prior to Full Retirement Age?
Not necessarily! Yes, claiming benefits prior to FRA triggered a monthly benefit reduction. Filing later, on the other hand, would have increased monthly benefits. But the overall lifetime benefit is about about the same!
According to Catherine Brock’s report, the formula used by the SSA “is designed to deliver a similar lifetime benefit either way.” That is, your lifetime benefit is about the same no matter when you chose to file for Social Security.
Recent research has found that the overall combined value of Social Security and Medicare amount to $570,000. This average varies greatly depending on lifetime income. But overall, lifetime benefits don’t vary much whether a claim is made before or after reaching FRA.
For many retirees, Social Security is a lifeline. It is a primary means of income. Lower payments can greatly impact living standards of your later retirement years. But there is no cause to dwell over whether you made “the right choice.”
You made the best decision at the time. You made the right decision. So why does money seem so increasingly tight?
At NORA, we believe that the varying cost-of-living-adjustment adds to uncertainty for seniors. COLAs currently change annually, making it difficult for America’s retirees to plan their financial futures with clarity.
NORA’s mission is to fight for legislation to make a 3% COLA permanent for Social Security recipients.
With low or nonexistent COLAs over recent years, this COLA should be retroactive to 2010. This act will provide seniors the benefit increases they unfairly missed due to low or missing COLAs.
If you support our mission to make a 3% COLA for seniors permanent, please sign our Benefit Reimbursement Petition to Congress. This is a once in a lifetime opportunity to let Congress know seniors should receive the benefits they have worked for!
And keep up with legislative and other news for seniors by following NORA on Twitter and Facebook!
