Whenever you’re creeping toward retirement age with little to no economies, it can be tempting to lean in your own Social Security benefits just a little too significantly.

For those with ordinary earnings, the benefits are only designed to replace around 40 percent of one’s income. And yet half of seniors say they expect Social Security to be their main source of income , a poll from American Advisors Group found — while only 12% expect to depend on personal savings to pay the bills.

While depending on Social Security too much in retirement isn’t ideal, whether it’s your only real option, the best you could do is optimize your benefits as muchas possible. Nevertheless, the average household can potentially miss from tens of thousands of dollars in benefits by asserting Social Security at the wrong moment.

The way the small mistake can cost you significant cash

You’re able to assert Social Security benefits any time starting at age 62, however, you won’t get the full amount you are technically eligible to until your entire retirement age (FRA) — that will be either era 66, 67, or somewhere between. Afterward in case you delay benefits beyond your FRA (until age 70), then you are going to get extra money in addition to your own entire amount every month.

This at which you assert might not look as if it makes a major difference, but depending on when you maintain and just how long you live, it could really make a difference of over $100,000a new study found.

Just around 4 percent of retirees make the maximum optimal decision about if to claim benefits, according to research from United Income. While 70% of beneficiaries assert before age 64, just 6.5% come out ahead financially from doing this. Moreover, 57 percent of individuals would build more wealth over their lifetime should they wait until age 70 to collect Social Security, yet only 4 percent claim at the era.

Because of this, promising benefits at the wrong time could result in as much as $3.4 trillion in potential lost riches among those beneficiaries — or around $111,000 per household.

There isn’t any one-size-fits-all answer for if is your best era to claim benefits; what’s appropriate for one individual might not be appropriate for the next. The reality is it’s impossible to know exactly what era is best to maintain, however you may make an educated decision in order you’re making the best choice possible.

Two factors that could negatively affect your final decision include your amount of economies as well as your life span.

If you experience an abundance of savings, then you might not necessarily need to optimize your benefits dependent on income. Rather, you may claim dependent on convenience and individual taste. As an example, if you have a sound nest egg that you be prepared to last through retirement, you might opt to retire and claim benefits at 62 so it’s possible to enjoy more time doing the things you love from your retirement. Because you don’t necessarily want the extra money you’d receive by waiting to maintain, you might too get the most out of one’s benefits by simply asserting as soon as possible.

On the other hand, if you’ve got little if any savings and expect Social Security to make up (or even most ) of your retirement income, then it might be wise to keep off on collecting benefits until age 70 so that you’re receiving more cash monthly.

One other key element is life span. If you have reason to believe you won’t live beyond your late 70s or early 80s, it can make more sense to maintain sooner instead of later which means you can enjoy your money while possible. But Americans live longer than ever (with a third of 65-year-olds today likely to call home until at least age 90, the Social Security Administration quotes ), therefore if you plan to spend a few decades in retirementwaiting to claim benefits can be a good idea. By asserting later compared to your FRA, you are going to receive that boost in benefits for the rest of one’s life — that can go along way in your older age when your own savings may have run dry.

Naturally, no one can predict exactly how long they’ll live. But for a good look at your health (as well as your household’s health history), then you can create a more educated and realistic decision regarding if to claim benefits so you come out ahead financially.

Everybody would like to get the most out of their money, however, maybe perhaps not everybody understands the way the decisions they make impact their finances longterm. Determining when to claim Social Security benefits might not seem such as a life-changing option. But make the right decision, and it may increase your retirement income to lifetime.