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Social Security Benefits

Should Social Security Benefits Be Used?

A majority of the people believe that you should hold up on the use of social security benefits until your retirement to get a bigger benefit. However, there are others who are in the support of the withdrawal of social security funds as soon as they are available. If you choose to withdraw these funds more often, it is advisable that you should invest the money wisely.

Reasons for Early Withdrawal

There are many reasons that may make you withdraw your funds as soon as possible instead of waiting till retirement. According to the Department Of Social Security, some people withdraw with fears that Social Security will go broke. The other group withdraws to invest in other ventures. The investors are more at ease when in control of their funds as opposed to waiting passively for a higher payment at a later date. Nonetheless, others wait for funds to increase for a bumpy harvest upon retirement.

Advantages of early withdrawal 

Whichever group you fall under, it is advisable that you should always have a practical strategy. All these strategies have their advantages and disadvantages. Using your social security benefits early has some advantages that include:

  • It enables you to gain control of your investment
  • You can invest in a 50%stock-50%bond portfolio resulting in more money in for interests
  • It will enable you to diversify your investments hence gaining more financial stability as you age

Disadvantages of early withdrawal

However, withdrawing your social security funds has its disadvantages too. The major disadvantages include:

  • You will receive a lower amount in comparison to the amount you would obtain if you waited for your retirement age. The amount is reduced by up to 25%. Go here for more details about this.
  • Your funds may get exhausted after 17 years

Advantages & Disadvantages of Waiting Until the Correct Retirement Retirement & Savings PlansAge


On the other hand, waiting for your correct retirement age has its upside and downside. The main benefits of waiting for the correct retirement age include:

  • You will receive the full amount that you are entitled to in these social security payments
  • You will receive the payments all through your life hence you will be able to enjoy the benefits all your life


Waiting for the correct age will also have some disadvantages for you. The major disadvantages are:

  • Inability to have full control of your finances
  • You will also not be able to invest adequately in the stocks-bonds portfolio

Strategies to Increase the Amount of Your Social Security Funds

It is advised that you should look for a more lucrative job in your working years. With a higher salary, the 6.2% of your salary that is deposited in your social security account will translate into more benefits during retirement. Thus, it is beneficial to strive for more income during your working years to have a comfortable retirement lifestyle with significant amounts of benefits. Financial experts advise you to start up with your strategies early in life for a comfortable retirement life.

The earliest age at which you can claim your social security retirement benefits is 62 years. The more you wait before claiming your benefits, the more money you will receive. Thus, if you do not have a solid investment plan, you should not withdraw the funds early since they may become depleted sooner. Whichever decision you contemplate on making regarding your social security funds, contact a financial expert for assistance. Make a decision that will not negatively affect your family in future.

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