What is the Cost of Taking Social Security Too Early?

As part of your overall retirement plan, you’re probably counting on your Social Security benefits. But what happens if you miscalculate and end up taking the benefits too early? Couldn’t this short term boost help you if you’ve falling short in other retirement vehicles?

A new study from United Income says that a couple electing for Social Security benefits too early could lose up to $111,000 over the course of their retirement. Given that people are living longer, deciding when to start receiving benefits is an important consideration that could have big impacts on your golden years.

The study found that only a very small portion of retirees-4 percent- took their government retirement benefits at the ideal point in time. To determine that optimal age, there are numerous factors that must be taken into account, including future retirement costs, being single vs. married, life expectancy, other sources of income, and whether or not the person intends to continue working.