Fact #2: Social Security Timing Counts
When you elect to take your Social Security benefits is important. A smart strategy can add up to thousands of additional dollars in your pocket.
Your monthly allowance varies according to the age at which you apply. You may begin to draw benefits at 62, but if you can draw on other assets and can hold out on Social Security benefits until you are 70, that can add up to an estimated growth rate of 8% per year.2
Keep in mind, it’s not just as simple as waiting until later to claim Social Security. Your decision has long-term and short-term income tax consequences.
When you claim changes the ratio of tax-preferred benefits (like SS) to taxable income, such as capital gains, qualified dividends, and withdrawals.3
If you’re right on the cusp, pay attention: Retirement age is officially on the rise. In 2018, we’ll see a 2-month increase for newly eligible retirees. Those born in 1956 will have to be 66 years, 4 months old before they can claim 100% of their benefits.4