Are You Really Ready to Start Collecting Social Security? 3 Signs It Might Be the Perfect Time.

There are a number of tricky decisions you might have to make in the context of retirement planning. These include whether to downsize, what Medicare coverage to buy, and when to sign up for Social Security.

While the amount of money you're entitled to from Social Security will hinge on your personal earnings history, your filing age plays a big role in determining how much you get to collect each month.

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Waiting until full retirement age ensures that you receive your monthly benefits without a reduction. Filing early, which you can do once you're 62, results in reduced monthly benefits. Delaying your Social Security claim past full retirement age, on the other hand, results in boosted benefits up until the age of 70.

It's clearly important to claim Social Security at the right time, and there are a lot of factors that go into that decision. Here are three signs that you may be ready to file for benefits right now.

1. You know what your retirement spending needs look like

Since your Social Security filing age helps dictate how much money you get each month, it's important to know what your monthly spending needs look like. But you may be ready to claim Social Security if you've run the numbers and mapped out a retirement budget that accounts for your essential costs, as well as the things you want to do with your time.

It's important to be realistic about your financial needs in retirement. Aside from basics like shelter, food, and healthcare, you're going to need things to do with your time. And some of them might cost money. But if your retirement budget reflects that, you may be in a good position to claim Social Security.

2. You've assessed your savings to figure out how much income they'll provide

A lot of people get so caught up in the idea of having a large individual retirement account (IRA) or 401(k) balance that they don't stop to think about how much annual or monthly income their savings will provide. But if you've done those calculations, you may be ready to claim Social Security since you'll have a sense of how much income you need from your benefits to meet your spending needs.

Let's say that based on your 401(k) plan balance, you expect to get $4,000 a month out of your savings. Let's also say you'd like a $6,000 monthly retirement income to maintain your desired lifestyle.

If you're eligible for $2,000 a month in Social Security at full retirement age, and you just reached that age, you can feel confident filing for benefits right away. Of course, you could delay your filing for boosted monthly checks. But if you feel that $2,000 a month in Social Security will give you the spending power you're after, then there's also no need to force yourself to wait.

3. You understand how your filing age might impact your spouse financially

Claiming Social Security can be simpler for single folks than for people who are married. When you're married, it's important to assess your spouse's financial needs as well as your own.

One thing you should realize is that if you expect your spouse to outlive you, the amount of money you collect from Social Security each month will determine what survivor benefit they get. But if you've already thought that through and understand how your filing age will impact your spouse's finances, then you may be ready to take benefits yourself.

Claiming Social Security is something you definitely do not want to rush into. But if the signs above apply to you, you can feel confident filing for benefits knowing you've run the numbers and considered how your decision could affect your spouse.

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