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Should I delay Social Security?

posted Oct 27, 2013, 4:36 PM by Tim Isbell   [ updated Oct 27, 2013, 4:54 PM ]

Sooner or later almost every U.S. citizen must decide when to trigger Social Security. Should they do it as soon as they become eligible (currently at age 62), wait until the maximum age (currently 70), or somewhere in between?

Every year that they delay taking the benefit their future payout increases about 7.3%.  If a 62 year old couple qualifies for yearly benefits of $30,000 today, but they wait until age 70 to trigger Social Security then they'll receive $52,000/year for the rest of their life!  But to delay the benefits for 8 years means they must fund their current living expenses out of savings/investments! Even if they have enough in their savings/investments, how long will they need to live past 70 in order to recoup the money they used to delay Social Security?

These are complex issues. For some guidance on how to think about them click on Delay Social Security?

Regards, Tim

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