One of the biggest decisions you will make in retirement is when to begin receiving your Social Security benefits. These payments last throughout your entire life, and the amount you receive depends on several factors, including when you start taking them. The longer you wait for your first payment, the larger the monthly benefit will be, which is why many seniors put off receiving these benefits for a number of years. Here are a few things to consider to help you decide when to start receiving payments:
Finances And Life Expectancy
Of course, when you decide to take Social Security benefits will mostly depend on your financial situation. For example, if you are in need of another source of income and retire early, you may want to request your money as early as you can. However, if you decide to remain in the workforce longer, you could put off receiving these benefits until you do retire or need additional retirement income. Waiting can pay off, especially if you are still working and don't need the benefits.
Another way to figure out when you should start taking Social Security benefits is by calculating your life expectancy. For instance, if you are in good health and anticipate a long life, waiting can give you more money when you need it most. Others may want to take these benefits as soon as they can. Nowadays, people are living longer than ever before, which means that income planning is more important so seniors don't outlive their money. There is no concern for these payments to stop during retirement, as they last for life, but it does also mean that seniors who plan on having a long retirement may need to think carefully about when to start these benefits.
Retirement Income Planning
Americans become eligible for Social Security benefits at age 62, though you can decide to delay taking the benefits until you are 70 years old. Age 65-67 has typically been a retirement target age for many people. However, you may decide to retire sooner or later than this age, depending on your financial and personal goals for your retirement.
If you have another income strategy, such as an annuity*, you may want to start your Social Security benefits sooner or later depending on when your annuity payments start.
Call today and we’ll put you in touch with a J.D. Mellberg Financial, Licensed Professional in your area to help you find a retirement income strategy that meets your needs. Be confident you will not outlive your money by choosing lifetime income** from annuity.
Give us a call at 1-877-805-0151