AUTHOR: R Quinn on 9/21/2024
Clearly the answer is maybe. It is a personal decision and I certainly am in no position to advise others or to push one decision or another.
I am more of the “bird in the hand is worth two in the bush” philosophy. We took ours at FRA and invested it for several years and we now have a pile of cash in bonds and monthly income (tax-free) to access when necessary. After over fifteen years reinvesting that income exceeds Connie’s monthly SS benefit.
Unless essential, I would not begin benefits before FRA, but beyond that the picture gets foggy seems to me.
On the other hand, the most common advice seems to be delaying for maximum monthly benefits in later years. The following reasons are often given.
- Increased Monthly Benefits: For each month benefits are delayed beyond the full retirement age (FRA), the monthly benefit increases. This results in a higher monthly payment at age 70.
- Higher Lifetime Benefits: Individuals who live beyond the average life expectancy can substantially increase their overall lifetime benefits by delaying Social Security.
- Potential Tax Benefits: Social Security benefits may be subject to income tax. Delaying benefits can reduce taxable income in retirement, potentially lowering the overall tax burden.
- Enhanced Spousal Benefits: For married individuals, delaying benefits can result in a higher survivor benefit for the surviving spouse
Given the payment amounts are actuarially determined, I don’t buy it. Yes, the monthly benefit will be higher at age 70 – if you reach that age, but for how long? Have more accumulated assets than necessary been used for needed income before age 70?
I see concern about the overall lifetime benefits collected as completely irrelevant.
Given the income levels where SS becomes taxable $25,000 single and $32,000 married, Is delaying SS benefits a practical concern for most retirees?
A higher spousal benefit may be desirable, but at what cost? There are other ways to provide for a survivor like paid up life insurance and accumulated assets that generated investment income.
So, am I alone in the woods again on this one?
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QUINNSCOMMENTARY 
I agree that it’s very personal depending upon your need for money in the present and near future. Here’s our personal experience.
My wife wanted to retire from her stressful job ASAP… a matter of maintaining her sanity. The day she reached 62. she resigned and started her S.S. And I benefitted because of the spousal benefit at the time and I received half of her S.S also. I continued to work and started collecting at age 70. And I continued to work until 77.
So here’s the unseen rub. The yearly COLA adjustment increased my S.S payment by a higher percentage because of my maximum payout waiting until 70. Also, my wife’s S.S increased additionally besides the COLA because I continued to work and contributed to S.S and her S.S increased accordingly.
We are both in reasonably good health and yes, we are kinda chancing we both will continue to collect for the foreseeable future. Again, this has been our experience and yours may be entirely different. But I am glad I waited until 70 to start to collect.
The Social Security program has worked great for us!
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the answer depends – in part on health, in part on spouse’s earned benefit, in part on need for additional guaranteed, inflation indexed income in retirement to meet everyday needs, in part on the worker’s ability to earn wages as they reach retirement age.
however, there isn’t a better priced “annuity” option for everyday American retirees who need added guaranteed, inflation indexed income in retirement. Price it against a SPIA and a DIA @FRA and age 70. Careful regarding spouse’s benefit if he/she is not claiming based on their own record.
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The answer is maybe yes or maybe no. Some people need the benefit before 70. Some may have health problems that cause them to think a long retirement is not in the cards. Some, like myself, didn’t think it was worth waiting on the chance that I might collect more in total by whenever my time is up.
I am always amazed at the long threads that occur whenever somebody asks the question should I take SS earlier or later.
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