The Biggest Retirement Income Mistake Isn't Claiming Social Security Early
Written by Maurie Backman for The Motley Fool -> If you claim Social Security before reaching full retirement age, you'll reduce your monthly benefits for life. Not adjusting retirement plan withdrawals for market events could deal your finances an even bigger blow. Not having
If you claim Social Security before reaching full retirement age, you'll reduce your monthly benefits for life.
Not adjusting retirement plan withdrawals for market events could deal your finances an even bigger blow.
Not having a plan, period, could put you in danger of depleting your nest egg.
If you've spent any time reading about retirement planning, you've probably heard some warnings about claiming Social Security too early. And you may be inclined to wait until full retirement age to file for Social Security to avoid reduced monthly checks for life.
The earliest age you can sign up for Social Security is 62. But for each month you claim benefits ahead of full retirement age, your monthly checks are reduced on a permanent basis.
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Clearly, slashing an income stream like Social Security is risky. But there's a potentially bigger mistake you risk making that could hurt your retirement finances even more.
Social Security ideally won't be your only source of retirement income. Hopefully, you'll have a decent chunk of money sitting in an IRA, 401(k), or another retirement account . But as dangerous as it could be to claim Social Security early, it could be even more detrimental to withdraw from your nest egg without a plan.
