Should you take social security now? Well, what is your age today? Most people believe that they want to take social security at age 62. However, most people can’t answer why they want to do it. Not many people really understand that genesis of it. Primarily, it comes from pension funds. At GM – you would get a pension. Then, you would get a bump until age 62; then, the bump would disappear.
When you’re taking social security early, most people don’t realize that you take a negative 6% cut every year you take it early. 62 is the first year that you can take it, but every year you delay taking social security, you gain 8%. Remember, retirement is all about income, not about assets. Social security dupes people into accepting the money sooner. Overall, if you knew what social security was really worth, you probably wouldn’t take it quite as early as you think.