Knowing when to take Social Security is dependent on a number of variables, all of which are unique to you and your financial plan. Ultimately, it is a financial choice you make, and it’s a very important one.
At WrapManager, our Wealth Managers create a comprehensive investment plan for our clients, so that we intimately understand all of the variables that are important to meeting their family’s goals. Many people come to us wondering: should I start early and receive Social Security retirement benefits as soon as I’m eligible, or is it better to wait so you can receive a higher monthly benefit?
Source: Social Security Administration
Below, we’ve outlined a few guiding questions designed to help you think smarter about when to start taking your Social Security retirement benefits. We’d encourage you to discuss with your family and one of our Wealth Managers.
How is longevity in my family?
Examining family histories while considering your current health will help when calculating your own life expectancy. Remember, planning for retirement means ensuring your financial needs are met for your entire life, not just a few years.
What are my cash flow needs in retirement?
Your income needs include all aspects of living, from grocery bills to travel plans to college tuition for grandchildren. At WrapManager, we can help calculate your anticipated income needs throughout your life expectancy, while also advising you on what accounts/assets you should use to fund your needs along the way.
What other sources of income will I have in retirement?
Your Social Security check is only one component of your income during retirement, so it is critical to consider all of your assets as potential income streams. Understanding how and from where you should draw income will help determine when it is most appropriate to start Social Security retirement benefits.
How does my spouse factor into all of this?
Your spouse may be eligible for a benefit based on your work record, though spouse benefits are reduced if claimed before the spouse’s full retirement agei. Deciding when to start your Social Security retirement benefits can also impact survivor benefits (what your spouse would receive if you pass away), so this is important to consider carefully.
Do you plan to continue working even during retirement?
If you do plan to start taking Social Security income while you are still working, your benefit may be reduced depending on when you commence taking your benefiti. As such, how long you plan on working and generating income could impact when you should start receiving benefits.
There are numerous more questions to ask and many variables to consider. WrapManager has the resources to help guide you toward making the decision that is right for you and your family. Call us at (800) 541-7774 if you want to review this information together with one of our Wealth Managers.
By Seton M. McAndrews, CFP®
Seton is a CERTIFIED FINANCIAL PLANNERTM professional and Vice President of Investments at WrapManager, Inc.
Source:
i Social Secuiry Administration
Additional Disclosure: WrapManager, Inc. is not a tax advisory firm. We recommend you contact your tax attorney or CPA prior to utilizing any of the tax-related strategies mentioned or discussed.
