To file for Social Security early means accepting a reduction in the monthly benefit received. However, signing up early may be the best option.

Social Security is a great resource when it comes time to retire. Though in order to receive full benefits, seniors must wait until they reach full retirement age—between 65 and 67 years of age depending on the year of birth. The government allows early registration after a person reaches the age of 62, but at the cost of a reduction in monthly payments.

Social Security benefits are reduced by up to 8 percent for each year you file early. So, if a senior’s full retirement age is 66 and they file for benefits at 62, they will face a 32 percent reduction in pay each month. Though there are circumstances in which filing for Social Security early is the best option. The experienced attorneys at Disability Associates, LLC provide explanation for those particular situations.

It makes sense to file for Social Security early if…

Your benefits can coordinate with those of your spouse:

Often times, couples do not consider their benefits as a joint venture. If both spouses are eligible for Social Security benefits, it may be sensible for one spouse to file early while the other waits until full retirement age, or after.

Benefit payments increase by an allotted percent each year that a person waits to file after reaching the age of full retirement. If one spouse files early, the couple can rely on a consistent form of income and benefit from higher payments later.

Additionally, if one partner dies, the surviving partner will continue to receive the higher amount of the two benefit payments. Despite the advantages that this situation presents, each individual needs to personally asses their financial need and cost of living. Choosing to wait for Social Security benefits may not be financially advisable across all circumstances.

You have a serious, or terminal, health condition:

If an individual has an illness that is threatening the longevity of their life, it can be beneficial to file for Social Security early. In such circumstances, seniors can begin their retirement early and feel financially secure.

Some financial experts may caution against this due to preconceptions about family health history and how this plays into one’s idea of their own life span. Many choose to file early, recognizing that their parents passed away at an earlier age. However with developments in modern medicine, health knowledge and technology, seniors are living happily into their 90’s and further. If a person chooses to file early and wants to go back to work later, they may face penalties.

You have no savings, and little income potential:

Filing for Social Security benefits early becomes essential to survival when a senior has no savings or alternative income. If an individual has been injured, cannot find work, has been laid off, or is not in a physical state to hold a job, then receiving a reduced payment may be better than not having a reliable source of income.

In any situation that you may find yourself in, discussing your options with a knowledgeable and experienced legal professional is important. These qualified individuals will be able to assist you in weighing all of your options before making any irreversible decisions with regards to your finances. Contact the experienced attorneys at Disability Associates, LLC today to discuss your unique situation.