Why Should I Wait Past Age 62 To Start Collecting Social Security?
All American tax payers who have paid into the social security system have the right to start collecting social security checks when they turn 62 years old. While this could be a great source of income, there are several reasons why you may want to wait to start collecting your benefits until a later age.
The first reason why you should wait past age 62 to start collecting social security is because you will receive a higher payout if you wait. When you turn 62 you will have the right to collect some social security, but it will not be the maximum amount you could qualify for. However, if you wait until you are 67 you will the right to collect the full amount of social security.
The second reason why you should wait past age 62 to start collecting social security is because you will have to pay higher taxes. If you are still working and collecting social security at age 62 you will have to pay the whole amount at your maximum tax rate. However, if you wait until you are retired your income will drop to zero and the social security income will be taxed at a much lower amount.
Earn More Money
The third reason why you should wait past age 62 to start collecting social security is because you will earn more money while you are still working. If you are still working at age 62 you will be contributing more money to the social security system, and the more you contribute the larger the benefit you could receive. If you take it early, the additional money you put into the system past age 62 will not benefit you at all.