When you claim benefits could impact your entire retirement plan.
Retirement is one of the most significant financial goals most Americans will save for, beginning early in most workers' careers.
However, the rising cost of living has been exacerbated by inflation, making it difficult for workers to save consistently and for seniors to get by on a fixed income. Though retirees have a guaranteed income through Social Security, many find that payments can't keep pace with rising costs of everyday life.
Though the longevity and solvency of Social Security remain murky, the age at which retirees begin to claim benefits can significantly impact their monthly income and the quality of life in their golden years.
JP Morgan explains why Social Security benefits play a crucial role in retirement and how to save for the anticipated rising healthcare costs as seniors age.
The age Americans claim Social Security is crucial for successful retirement
Social Security is the lifeline for many retired Americans, serving as the only universal source of guaranteed income, regardless of occupation or age. However, the difference between claiming benefits at 62, 67, and 70 can have significant implications for retirees.
JPMorgan analysts found that seniors who delay Social Security benefits will receive nearly double that of those who claim benefits at 62. This could mean the difference in seniors living off the annual salary for minimum wage workers or the 2024 median American income of nearly $62,000.
