Should you Delay your Social Security Benefits?

Taking Social Security early can sometimes result in a higher lifetime payout, but at times, taking Social Security later could be a better choice.

Before we explain why, let's recap how Social Security works. Full benefits are typically available between the ages of 65-67, depending on your date of birth. If you choose, you may receive benefits as early as age 62, in which case your benefits will be reduced. Or, you can delay benefits as late as age 70, in which case your benefits will increase.



Which choice results in the most cash for youcan depend on two factors. 1) whether you actually need the benefit to support your living expenses, and 2) your life expectancy.

If you don't need Social Security benefits to support your living expenses, taking benefits early could be the better choice. However, if you actually plan to use that money, starting later may be a better choice, depending upon how long you think you will live predicated on your present health and also your family history of longevity.

The Social Security Administration (SSA) calculates monthly payments based on your normal life expectancy. If you live beyond that life expectancy, then delaying benefits could result in not just higher monthly payments, but also a potentially great lifetime payout.

If you are getting ready to retire soon, or just need to get ideas to plan for the future, please feel free to discuss this aspect in your overall retirement plan with us.

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