At this point, you may be making certain plans for 2024. Maybe you're mapping out some potential travel itineraries. Or maybe you're gearing up for a big move to another state.
You may also be contemplating a Social Security filing. And if any of these factors apply to you, you may want to make 2024 the year you sign up for benefits.
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1. You're ready to retire and have saved enough
You're eligible for your complete monthly Social Security benefit based on your personal income history once you reach full retirement age (FRA). That age is 66, 67, or somewhere in between, depending on when you were born.
You may be reaching FRA in 2024. Or maybe you'll still be a little shy of that age. But either way, if you've saved really well for retirement and are ready to end your career, then claiming benefits could make sense. That way, you can reclaim your time and focus on the doing the things you enjoy.
Of course, if you're concerned that your nest egg isn't so robust, you may want to wait until FRA to start collecting Social Security. But if you have, say, $3 million to your name, then you may be just fine to move forward with a filing in 2024, even if you're a bit shy of that milestone.
2. You're turning 62 and are in poor health
Age 62 is the earliest age to sign up for Social Security. And filing at that age will mean reducing your monthly benefit to the greatest extent possible -- for life. However, if you're in really poor health, then you may want to consider claiming Social Security in the new year once your 62nd birthday arrives.
Although a Social Security filing at age 62 will result in a reduced monthly benefit, it could also result in a larger lifetime benefit if you end up passing away relatively young. And while you can't exactly predict how long you'll live, if you have notable health issues, then an early filing may be your better bet.
3. You're turning 70 and have boosted your benefits as much as possible
Delaying your Social Security claim past FRA results in a boosted benefit for life. And that's a good reason to hold off on filing beyond FRA if that option exists for you, such as if you're able to continue working.
However, you should know that the delayed retirement credits you get for postponing your filing stop accruing at age 70. To put it another way, once your 70th birthday arrives, there's no financial upside to continuing to delay your Social Security claim.
So if you'll be reaching age 70 in 2024, go ahead and throw yourself a giant birthday bash. But also, make it a priority to sign up for Social Security so you can start getting your money.
The start of a new year is always exciting. So as you make your 2024 plans, think about whether claiming Social Security fits into them. And if these points apply to you, you may want to carve out some time to submit an application for benefits.
