Social Security benefits can be a valuable source of income when you reach retirement but deciding when to file can be difficult to determine. Should you start receiving your check at age 62 or hold out for a larger sum at age 70? We consider all of these factors and explain what you need to know on this episode.
(Click the featured times below to jump forward in the episode)
Managing your income during retirement can be one of the top challenges you’ll face because of we never know exactly how much we’ll need to live comfortably and without worries. One piece to this puzzle is Social Security. We pay into it all of our lives but how do we determine when to start collecting our return.
That’s our focus in this episode of Solving the Financial Puzzle Podcast with Dan Cuprill. Let’s work through the different scenarios and considerations to help you determine what age might be best for you to file for Social Security. Should you elect for a longer period of payouts or wait a little longer in favor of a larger paycheck every month?
Legally, age 62 is the first year you can start receiving your benefit but did you know that your check would be almost 80% higher if you waited until the age of 70? Either option could be right for you and that’s why it’s important to understand the value in both options. We’ll walk you through those factors and provide some explanation, but it’s also important that you get a Social Security timing analysis with your advisor to be certain your plan is tailored to you.
You’ve put in a lot of time and effort to get yourself ready for retirement so make sure you have the income you need to enjoy it to the fullest. Leveraging Social Security can be a big part of making that happen.
Listen to this episode to find out more and use the timestamps below to skip ahead to specific segments of the podcast. (Click the featured times below to jump forward in the episode)
1:53 – Introducing today’s topic: Social Security and what you need to know
3:00 – The questions everyone asks, ‘When should you file?’ Here’s what you should consider.
4:36 – The system rewards you for waiting, but at what age is your break even point?
5:53 – Every situation is different but you need to figure out your sources for income.
7:18 – Why it’s important to get a Social Security timing analysis.
8:24 – Another factor to consider if you plan on relying heavily on savings.
9:08 – Quick of review of when you should file and things you should be considering.
The Full Picture:
[spp-tweet tweet=”I call it Social Insecurity because, quite frankly, the system itself is not well-designed in my opinion.. It is built on the very same principles of a Ponzi scheme. I’m sorry but that is true. That doesn’t necessarily mean, though, that it can’t work. But it has its challenges. -Dan Cuprill”]
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