Top 10 Reasons you should take Social Security at 70

Описание: 0:00 - Here are my top 10 reasons retirees should consider delaying Social Security Benefits until the age of 70.

0:08 - 10 – You Can’t outspend it – As you receive your social security payment monthly, there is no way to spend it all, in a sense, and run out. This can be great for those that struggle with keeping their spending in line.

0:23 - 9 – Easier for planning purposes – Delaying to 70 compared to taking social security at 62 can increase your monthly social security income by roughly 80%. For a lot of retirees this could cover the majority or all of their expenses. So from a planning perspective, it is much simpler to invest to bridge the gap of 8-10 years, while delaying, instead of investing for a 30-40 year retirement.

0:51 - 8 – No Fees – Social security doesn’t charge fund management expenses, annuity commissions, or 1% AUM fees. That alone can save you large amounts of money over the course of your retirement. If you have an advisor that is recommending you take social security as early as possible, consider that this may be their motivation.

1:14 - 7 – Higher Survivor Benefits – The higher payouts translate directly to higher survivor benefits. When you run your analysis on the pay back periods for delaying, always consider the likelihood that one of you, yourself or you spouse, will probably live long enough for delaying to make a sense. It is an industry standard for the higher earner to delay to 70, while the lower earner has more flexibility on when they start their benefits.

1:42 - 6 – It’s Simple and Easy. Have the monthly checks directly deposited into your bank account. Nothing complex about it. No managing investment portfolios or worrying about the stock market.

1:55 - 5 – Guaranteed by the Government – The best guarantee money can buy. This is not a state or company pension fund. It is backed by the US government. Social security is also relatively secure from changes in legislation. As retirees are the most dedicated voters in the US, no politician would ever change benefits for current beneficiaries.

2:20 - 4 – Tax Efficiency – Social security income is quite tax efficient relative to other income sources. A lot of states don’t tax social security income at all. Combine that with the fact the federal government does not tax your whole social security income. As you income increases more is taxable, but only up to 85% of your social security check can be taxable income. So in the simplest sense you pay at least 15% less in taxes than you would for traditional income.

2:50 - 3 – Inflation Adjusted – You never have to worry about out of control inflation again. Every year you will receive a bump in income due to inflation. So why wouldn’t you want as much income as possible from this inflation protected source.

3:04 - 2 – Higher Base Income – Taking social security at the age of 70 creates a better worse case scenario. Take for example you lose every last dollar you own in the stock market. Unlikely, but your income floor would still be set much higher since you delayed benefits. So your lowest possible standard of living would be much more comfortable.

3:28 - 1 – Longevity Insurance – Social security keeps paying until the day you die. A great way to never run out of money, no matter how long you live. And with the advances in medicine, this should be an even greater concern for retirees.

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