A viewer asks, “When is the best time to start taking Social Security?” Our moneyman, Certified Financial Planner™ Paul Fain joins us now with answers.
PAUL, MAYBE WE SHOULD START BY REVIEWING THE EARLIEST AND THE LATEST THAT YOU CAN START SOCIAL SECURITY BENEFITS…
- Age 60: Widow/Widower
- Age 62: Reduced normal benefit
- Age 66-67: Full Retirement Age
- Age 70: Latest and maximum benefit
WHY WOULD YOU ELECT AN EARLY BENEFIT VS. A LATER BENEFIT?
- Early: poor health, early mortality in family, financial need
- Late: exact opposite – good health, expected long life, other resources
- Breakeven: ~12 years
WHAT ARE SOME OF THE OTHER CAVEATS OF TAKING SOCIAL SECURITY?
- Spousal benefits
- Earned income limit ($17,640)
FAST MARKET FACT: Social Security Program Solvency & Sustainability
- 100% funded to 2037
- 76% funded thereafter; unless changes to benefits and revenue
QUESTION FOR OUR MONEYMAN?
Send them to Paul@assetplanningcorp.com!
You can also reach Paul by using the contact page on APC’s website.