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5610 Ward Road, Suite 300 Arvada, CO 80002
9200 E. Mineral Avenue Centennial, CO 80112
Phone: 303-252-0852
Website: www.walshfinancialsolutions.com
November/December 2020
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. https://www.ssa.gov/planners/retire/delayret.html
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Advisory Services offered through Walsh Financial Solutions or Vanderbilt Advisory Services. Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. Registered with MSRB. Walsh Financial Solutions and Vanderbilt Securities, LLC are separate and unaffiliated entities. Clearing agent: Fidelity Clearing & Custody Solutions. Insurance Services offered through Vanderbilt Insurance and other agencies. Supervising Office: 125 Froehlich Farm Blvd, Woodbury, NY 11797 631-845-5100
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