Now that 2024 is officially here, you may be gearing up to make certain retirement-related moves. And one of those may be signing up for Social Security. But before you claim benefits in 2024, run through these important questions to make sure that’s really the right choice.
1. Am I reaching full retirement age?
Full retirement age, or FRA, is when you’re entitled to your full monthly Social Security benefit based on your individual earnings history. If you were born in 1957 or earlier, you’ve already reached FRA. If you were born in 1958, FRA kicks in at 66 and eight months, so you may reach FRA this year.
You’re allowed to sign up for Social Security as early as age 62, so not getting to FRA in 2024 won’t prevent you from claiming benefits. But for each month you sign up for Social Security ahead of FRA, your monthly benefit will get a permanent reduction. Before you lock in a reduced benefit, figure out whether waiting a bit longer to file makes sense.
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2. Do I know how my spouse feels?
You may be more than ready to sign up for Social Security. But if your spouse feels differently, that’s the sort of thing you’ll want to know.
It may be that your spouse would like you to delay your Social Security claim as long as possible so you can snag the highest monthly benefit. Delayed retirement credits that result in a higher monthly Social Security benefit can accrue until the age of 70.
It may also be that your spouse was a lower earner during their career and isn’t entitled to much from Social Security. In that situation, they may be counting on a spousal benefit, which can equal up to 50% of the monthly benefit you’re entitled to. That would be another good reason for your spouse to want you to wait to file, so it’s important to let them weigh in.
3. Do I have ample savings?
Maybe you’re sitting on a $2 million nest egg and are thinking of claiming Social Security in 2024, even though that’s a couple of years before FRA. In that situation, an early filing may not hurt you.
Either way, it’s important to assess your savings before signing up for Social Security. If you realize your nest egg isn’t as robust as you’d hoped for, that might motivate you to hold off on taking benefits.
If you’re turning 70 in 2024, it pays to sign up for Social Security regardless of what your 401(k) or IRA looks like, since there’s no financial incentive to delay your claim any longer. But if there’s room for your monthly benefit to grow, then you’ll definitely want to evaluate your savings before making your Social Security claim official.
Is 2024 a good year for you to file for Social Security? Maybe. Or maybe not. But running through these questions could help you arrive at an answer that makes sense for you.
