The Social Security Administration reports that 6 out of 10 retirees begin collecting social security at age 62 at the reduced benefit. Though each year of delay results in about a 7-8% increase (depending on your birth date) in payments, the key point may be best defined by Michael Tucker in a July 2009 Financial Planning Journal article. There are other considerations, too, for married couples and the calculation of survivor amounts. For this blog entry:
He states "...the greater the proportion of retirement income derived from Social Security the more advantageous is delayed retirement..." If, and the big "if" here is if "...enhanced standard of living is the decision criterion."
The question must be raised whether you desire to maximize your wealth or maximize your retirement income. Not everyone wants to just accumulate and some choose the lifestyle of retirement living.
So, if you are one who expects your social security payments to account for 10% of your retirement income, then taking it at age 62 may be economical.
For some retirees who will be counting on 20% and up to even 80% or more of their retirement income from social security, then delaying may be a better solution.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.