DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing When to take Social Security?
Jan 20, 2025
The speakers share hilarious winter mishaps while navigating icy conditions. They dive into the crucial decision of when to claim Social Security, comparing early benefits against deferring for larger payouts. The discussion highlights tailoring financial plans to individual situations and considers the implications of life expectancy on maximizing benefits. Plus, thoughtful insights shine a light on spousal benefits and address concerns about the future of Social Security in retirement planning.
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Use Planning Tools for Decisions
- Assess personal longevity and health before deciding when to take Social Security.
- Use planning tools to model cumulative benefits and determine the crossover age for optimal benefit timing.
When to Take Social Security
- Delay Social Security benefits if you expect to live beyond 82 to 85 years for higher cumulative payouts.
- Taking benefits early might help if you have shorter life expectancy due to health or personal factors.
Benefits of Waiting
- Each year delaying Social Security increases monthly payout by about 8%.
- Long-term distribution planning is essential, considering taxes and overall retirement strategy.