You’re temporarily out of work
Generally speaking, it’s a good idea to file for Social Security if you lose your primary income source and don’t have the means of covering your bills without it. After all, why rack up costly credit card debt when you could instead start collecting the money you’re entitled to and pay your expenses that way?
That said, if your jobless situation is only temporary – say, you got laid off but aren’t ready to retire and are actively searching for a new role – then it pays to tap other income sources before turning to Social Security. For example, you might be eligible for unemployment benefits, which are designed to replace a portion of your income and generally last up to six months. Or, you might withdraw cash from your emergency fund to tide yourself over until a new job offer comes your way.
Now if you’re not eligible for unemployment and have no near-term savings to fall back on, you may have no choice but to file for Social Security. But it pays to explore other options before claiming benefits and possibly lowering them for life.
