When should your clients claim Social Security?
When it comes to
While it does make sense to wait as long as you can,
"Because each individual, couple, widow, and widower has a unique lifestyle and unique income needs, I believe a year-by-year evaluation prior to beginning benefits is the best approach," Hohenberger says.
One item you need for that annual retirement review is a current copy of your
Here, Hohenberger outlines a comparison of claiming now vs. later and offers key considerations as you review your strategy each year.
Comparison: Claiming sooner vs. later
Let's start with a hypothetical example:
If he had delayed receiving benefits until he was 70, he'd receive
"Unlike personal assets that can be exhausted,
Make wellness a deciding factor
Your health can play a big role in helping determine when you should start taking benefits. Do your loved ones live long lives, or have most succumbed to illness before age 65? "It's not the most accurate indicator of what's going to transpire in the future, but it can have some bearing and, therefore, should be taken into consideration," Hohenberger says.
"If you're in reasonably good health and anticipate a continued healthy lifestyle, that usually counsels in favor of waiting," he continues. "If, on the other hand, you're in poorer health and have concerns about longevity, that counsels toward drawing benefits sooner rather than later."
Do you have enough income?
Another key factor is having other sources of income to help you live comfortably in retirement without needing
Considerations for married couples
Hohenberger suggests married clients look at multiple factors when determining the timing for each spouse to claim
For example, if you're working part time or seasonally, your
"Not only does it increase the size of the benefit that the [higher-earning] individual personally receives, but it also increases the size of what's known as the survivor's benefit that the [lower-earning] spouse could draw if the other spouse passes away," Hohenberger says.
What about taxes?
When it comes to when to claim
"For the vast majority of people, their marginal tax rate in retirement will be fairly constant," Hohenberger says. "If retirees were to take their
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