written by, Conrad Slate

The most misunderstood but highly important factor is the advantage of waiting.  It is not for everyone, but each month you wait beyond your Social Security Full Retirement Age (FRA) your benefit increases 2/3 of one percent.  That’s a guaranteed 8% increase annually.  No investment risk!  For most of us that means a 24 to 32% benefit increase just for waiting to 70.  Plus, if you continue to work beyond your FRA, then your benefit could also increase due to your earned income.  Waiting just a few months beyond your FRA will make a difference!

We live on monthly cash flow, not the total of what we’ll earn in life.  Looking at the total sum of Social Security benefits to be received over life is only one way of thinking about the best time to begin benefits.  Early death will render that calculation meaningless.  Looking at your expenses and then your income from all sources in retirement is a better way to determine when to begin.  If you do not have enough income today, then waiting may not be an option.  However, if you don’t need Social Security today, at least considering the option to wait will help you make a good choice for yourself and your family.

To help you make decisions, we use a software package that will sort the options, but it doesn’t make your decision.  This step just helps you make a smart choice!  Answer some simple questions and then we’ll get an analysis to help you make the right decision for you.


If you would like to discuss your next steps, we are available.

We can walk you through how to use our software to track your spending and retirement accounts and help you prepare for the future.  Call (865) 357-7370 or email kim@sdp-planning.com to schedule a meeting or discussion.