Kiplinger’s recent article entitled “3 Reasons to Wait Until 70 to Start Taking Your Social Security Benefits” provides three reasons why delaying taking your Social Security benefit to age 70 is a decision you may want to consider.
However, if you delay filing for Social Security until age 70 and wait to take your benefits until after your FRA, Social Security will add an 8% delayed retirement credit to your eventual monthly payout each year you hold off
2. You May Be Receiving these Benefits for a Long, Long Time. Life expectancy is a significant factor in Social Security planning. While you can’t predict how long you’ll live, the CDC’s most recent figures say the average American who makes it to age 65 can expect to live another 19 years. Note that if your Social Security benefit at 70 is more than 75% higher than your benefit at 62, you’re going to have a lot more money to take care of your needs as you age.
If you’re married, the lower Social Security payment will go away when one of you dies. If the spouse with the greater Social Security wage history delays as long as possible to file for benefits, he or she will leave behind a bigger benefit for the surviving spouse. This may be a consideration in your choice to delay filing Social Security to a later age.
However, if you’re like many Baby Boomers — you may have a sizeable amount of your retirement savings in tax-deferred IRAs or 401(k)s — and the federal income taxes on those savings could be hefty.
If you aren’t sure which Social Security claiming strategy or whether to delay filing for Social Security is the best route for your needs and goals, talk to an experienced estate planning attorney who is knowledgeable about retirement income planning and, specifically, Social Security benefits.
Reference: Kiplinger (Sep. 9, 2021) “3 Reasons to Wait Until 70 to Start Taking Your Social Security Benefits”
“I have known Kayce for years and would trust her completely with any legal situation you may have.”
“Very professional, courteous and well prepared staff!”
“Kayce and the entire team … are great to work with. Professional, responsive, and prompt.”
“…very professional and thorough in every aspect of the process!”
Planning your estate is essential no matter how old you are or your situation in life. If you have yet to estate plan, let our firm help you with all aspects of the process.Book a FREE Call Now!