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Joe Diamond, CPA, CFP®, EA, MST


Diamond Financial Corporation

4256 North Arlington Heights Road, Suite 204

Arlington Heights, IL 60004


Phone: 847-884-8500 




November/December 2020

Does Delaying Social Security Make Sense for You?

Does Delaying Social Security Make Sense for You

Did you know that every year you delay starting Social Security benefits increases your eventual monthly check by 8%, in most cases.* If you get your full retirement benefits at age 66, waiting until you are 70 will increase your monthly benefit by 32%.

Should You Delay Benefits?
If you have significant health problems that are likely to shorten your life expectancy it may make sense to take benefits early. But, if you don’t need Social Security income to live on, the conventional wisdom is to delay starting Social Security benefits.

Reasons to Delay Benefits:

  • Social Security benefits are guaranteed Social Security by the U.S. government. Once your Social Security benefits are locked in, they aren’t subject to market risk.

  • The government grants a cost-of-living adjustment (COLA) each year that increases Social Security benefits. Those COLA adjustments start at age 62, and you benefit from them whether or not you claim benefits at the time.

  • The 8% credit you can earn each year by waiting is significantly higher than current interest rates. It would be difficult for you to get that kind of return from ordinary investments – and it wouldn’t be guaranteed.

Now or Later
Remember, there’s no benefit to putting off benefits after age 70, when your benefit amount is maxed out. If you decide to retire at age 68 instead, you’ll retain the 8% annual increase to date, however it accrues monthly, so your birthday affects the final amount.

Alternatively, if you start Social Security retirement benefits is age 62, which is the earliest age allowed, your checks will be reduced by 27% — 30% if you were born in 1960 or later.

Don’t forget that if you are taking Social Security and have other income some of your benefits may be taxable.

Deciding when to start taking Social Security retirement benefits is a big decision that cannot be changed, so consult your financial and tax professionals in advance.

*Those born prior to 1943 may receive a slightly lower benefit by waiting.


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