As you probably know, most financial planners advise you to wait until age 70, if you can afford to wait, to be able to receive your social security benefits. The monthly payment for this event will be 32% higher than when you started receiving benefits at age 66. Although they reach the age of 80, these larger monthly payments should offset the unrealized income four years after 66 years which is at 70 years old.
Everyone "knows" that they must defer social security benefits until 70 years of age. However, to what extent do these pieces of advice depend on the federal government's compliance with its social security commitments? The social security administration of the trust fund should operate without money in 15 years. If the changes are not made for the first time in 2034, the IRS will be able to pay only 77% of the benefits. So, would you better start receiving benefits at age 66 or even take early retirement at age 62?
Postponing benefits for as long as possible can give you more income for life. Can you afford to wait? Here's how to determine when it suits you.
Even for Americans who have invested heavily in their retirement over the years, the benefits of social security are important. One of the first important decisions we face as we approach retirement is when we say that our benefits and timing are important. Although you can start at age 62 or wait a few years until you reach retirement age, you can significantly increase the amount you received during your lifetime. This reason is related to the uncertainty of social security in the hands of our elected representatives. If you consider that some proposals are seriously taken into account by Congress and the Trump administration, which reduces future social security benefits, then it is best not to wait until age 70.
Not with standing the compensations, idling until age 70 to start providing social security is not always the best option or even a viable solution. Some people cannot do anything else and whose savings have not been enough to wait. Unfortunately, it's not an insignificant amount of people.
Here's how to evaluate if the delay is achievable:
Start a large network. To make sure you're waiting is a good option, it works with all the possible complaint strategies available to you and your partner.
For instance, if you have a younger daughter at home, she may be entitled to a payment of half of your benefits, which would be a valuable credit sooner or later.
On the other hand, consumers also expect that the demand for terminal illness could discover who would benefit from the delay to increase the chances of survival benefits which would be available to a spouse.
Funding factor
If you want to wait; there's a pivotal question to answer, "How are you going to live comfortably until you are 70 years old?"
You can continue to work by offering continuous quadruple income benefits and additional opportunities to enhance and increase your retirement savings while allowing your Social Security benefits to grow and eventually replace a full year or low income. Keep in mind that the strategy of "longer work" may not be possible. Nearly half of retirees retire from the workforce earlier than expected, for reasons such as health problems, layoffs, and help from family members, according to the Institute for Employee Benefits Research 2017 employees. One can also plan other assets with the idea of making small distributions after the start of social security design. Define a strategy with your financial advisor to assess the feasibility of this idea and how best to manage it. One strategy would be to create a "retirement social security bridge" in the form of a bonus scale or a certificate of deposit covering eight years aged 62 to 70. This allows you to generate income to replace your underpayment of social security and reduce your exposure to market volatility.
Consider the ultimate goal.
Think of cases where social security complains about longevity risk: If you claim at an earlier age and die quickly, the system will bring you more money, but if you live longer than expected, you run an increased risk of seeing your standard of living run low. According to the estimates of the social security administration, this performance represents at least 90% of the income of 23% of couples and 43% of single people.
The truth is, you do not know when you die, but you know what is most important to you. Do your heirs make more money, or you and your wife would be less likely to survive with your money
Conclusion
You can certainly disagree with this or that hypothesis that I have made, and other sets of hypotheses lead to different conclusions. However, that's the point. There is no way to avoid betting if and how the government will maintain the social security system. However, as always, remember that it is important to consult your financial advisor before making a decision as important as deciding when to start receiving social insurance.
Flynn Financial Group Inc