February 8, 2015 Admin | February 8, 2015 Waiting to take your Social Security benefit until age 70 can be very wise. Why?
2 thoughts on “February 8, 2015”
If you wait to take your social security until 70 the amount you get every year is larger. SS increases 8% a year until you hit 70. So if you wait a year you are getting a 8% return just for waiting, this pays off in the long run if you live a few years past 70. So if you are planning on living a long time you should wait to take ss until you are at the age where it is maxed out. You need to plan accordingly for retirement, ss alone will not be enough for most people to live off off and should not be planned that way. Make sure you put money in your retirement plans at work and your IRA every year.
Well said, Garrett. Let’s review.
(1) You will earn a guaranteed 8% per year by waiting on your Social Security benefit until age 70 instead of taking it at your full retirement age.
(2) Your life expectancy at full retirement age is well beyond the break even point (around age 8)). It’s a no-brainer if you don’t absolutely need the money.
(3) You can retire whenever you are ready, don’t associate retirement with Social Security. They are two different animals.
(4) Consider accessing your investment accounts early in retirement to allow you to wait until age 70 before pulling your Social Security benefit.
(5) Get a plan, work that plan, and stay with it. Financial freedom may follow!