MAKE AN INFORMED DECISION ABOUT SOCIAL SECURITY

Achieving your retirement goals takes disciplined saving, spending and investing – all of which can feel overwhelming, especially as the retirement landscape continues to change.  We have created a seven-part blog series called Principles for A Successful Retirement to help you stay focused and reach your goals.

Last week we provided you with Principle 2 and you will find Principle 3 below.  If you would like to revisit Principle 2, click this link. We hope you find the material interesting and useful and urge you to call us if you have questions or concerns.

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Principle 3

MAKE AN INFORMED DECISION ABOUT SOCIAL SECURITY

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Social Security benefits are permanently reduced by as much as 25% when started before full retirement age (currently 66) and are permanently increased by as much as 32% when started after. Should you take smaller amounts sooner?  Or wait for larger amounts later and rely on your portfolio in the meantime? If your goal is to maximize your cumulative benefit, the answer depends on how long you live. You would receive more in total at age 75 by claiming at 66 rather than 62, and at age 80 when choosing between 66 and 70.

The odds of receiving more by waiting are in your favor
Because of the relatively high probability of living to 75 and 80, delaying Social Security often pays off in the long run—especially if your portfolio gives you that flexibility.

Next week we will post Principle 4 – Know What to Expect with Health Care Costs

 

 

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