208-664-8980

1875 N. Lakewood Dr.
Suite 102
Coeur d'Alene, ID 83814

Retirement Read Time: 3 min

When Should You Take Social Security

The Social Security program allows you to start receiving benefits as soon as you reach age 62. The question is, should you?

Monthly payments differ substantially depending on when you start receiving benefits. The longer you wait (up to age 70), the larger each monthly check will be. The sooner you start receiving benefits, the smaller the check.

From the Social Security Administration’s point of view, it’s simple: if a person lives to the average life expectancy, the person will eventually receive roughly the same amount in lifetime benefits, no matter when they choose to start receiving them. In actual practice, it’s not quite that straightforward, but the principle holds.

The key phrase is “if the person lives to average life expectancy.” If a person exceeds the average life expectancy and has opted to wait to receive benefits, they will start to accumulate more from Social Security.

The chart shows how Social Security benefits accumulate for individuals who started to receive at ages 62, 67, and 70. The person who started to receive benefits at age 62 would accumulate $327,600 by the age of 85. Conversely, the person who started to receive benefits at age 70 would accumulate $386,880 by the age of 85. The example assumes a retirement benefit of $1,625 at age 67. It does not assume COLA.

Source: Social Security Administration, 2022

There is no single “right” answer to the question of when to start benefits. Many base their decision on family considerations, economic circumstances, and personal preferences.

If you have a spouse, the decision about when to start benefits gets more complicated – particularly if one person’s earnings were considerably higher than the other's. The timing of spousal benefits should be factored into your decision.

When considering at what age to start Social Security benefits, it may be a good idea to review all the assets you have gathered for retirement. Some may want the money sooner based on how assets are positioned, while others may benefit by waiting. So, as you near a decision point, it may be best to consider all your options before moving forward.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

5 Ways to Control Your Vacation Budget

5 Ways to Control Your Vacation Budget

You work hard. You deserve a vacation, whether you go with family or friends or go solo. But what happens when your budget starts spiraling out of control? Here are five strategies to keep your dream vacation from turning into a nightmare.

Financial Hacks for Millennials: Values-Based Investing

Financial Hacks for Millennials: Values-Based Investing

Millennials can opt to follow a values-based investing strategy to invest their money in conscientious ways.

Four Tips for Getting the Most From Your Life's Work

Four Tips for Getting the Most From Your Life's Work

Some things to consider when contemplating selling your business

 

Have A Question About This Topic?







Thank you! Oops!

4 Ways Thinking Long-Term Can Improve Your Everyday Life

Financial planning often doesn’t take place on a beach. But the next time you find yourself there, try this experiment, courtesy of management and motivational guru Stephen R. Covey: You’ll need a mason jar and an assortment of big rocks, smaller gravel, sand, and water.

Protection Against Uninsured Drivers

You’re hit by an uninsured driver. Now what? Are you protected against financial losses?

3 Estate Challenges for Blended Families

If you’ve been re-married or divorced, these family structures may present some unique challenges. This article will help your clients with blended families think and prepare their estate strategy.

View all articles

Contributing to an IRA?

Determine if you are eligible to contribute to a traditional or Roth IRA.

Federal Income Tax

Use this calculator to estimate your income tax liability along with average and marginal tax rates.

Comparing Investments

This calculator compares the net gain of a taxable investment versus a tax-favored one.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

Don’t Myth Out on Whole Life

Whole life insurance can help protect what matters most: your family, your assets, and your legacy.

Questions to Consider When Buying a Vacation Home

Doing your research is key before buying a vacation home.

Safeguard Your Digital Estate

If you died, what would happen to your email archives, social profiles and online accounts?

View all videos