Barbara Ginty Says ‘Collecting Social Security Is a Million-Dollar Decision’ — Here’s How You Should Approach It
Written by
Jaime Catmull
Edited by
Gabrielle Olya
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Deciding when to start collecting Social Security is a major decision that you shouldn’t take lightly. Collecting early will mean a reduction in your benefits, while delaying until age 70 means you will receive the largest benefit you are eligible for. However, there is no one-size-fits-all answer to the best time to start collecting.
GOBankingRates spoke with Barbara Ginty about how to determine when to start collecting Social Security benefits. Here’s what she had to say.
Be Strategic
Ginty said not to make any decisions until you’ve made a thorough analysis of your options.
“Collecting Social Security as a household is a million-dollar decision,” she said. “Before you collect, you need to make sure you analyze [your options] and have a collection strategy that benefits your retirement income needs as individuals, but also as a household.”
If you have a partner, you may want to stagger when you begin collecting to maximize benefits. For example, one person can start collecting at full retirement age so that you have that extra income coming in sooner, while the other waits until 70 so that they are able to maximize their benefit amount. If only one person is eligible for benefits, consider how when you collect will affect both your benefits and spousal benefits for your partner.
Think Twice Before Collecting Early
Currently, you can start receiving your Social Security retirement benefits as early as age 62, but your benefits will be reduced by at least 25%, depending on your full retirement age. In addition, spousal benefits will be reduced by at least 30%.
“Often, people collect early and thereby miss out on additional income had they waited,” Ginty said. “According to a 2019 Mass Mutual survey, almost 40% regret collecting early.”
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Gabrielle Olya contributed to the reporting for this article.
