Retirement Planning

Social Security — What You Should Know

Social Security is the largest asset most Americans will ever have. The decision of when to claim can be worth $100,000–$300,000 in lifetime benefits — and most…

Retirement Planning

Social Security: What You Should Know.

The claiming decision most people make without modeling the outcome.

Social Security is the largest asset most Americans will ever have. The decision of when to claim can be worth $100,000–$300,000 in lifetime benefits — and most people make it without analysis.

76%increase in monthly Social Security benefit from claiming at 62 vs claiming at 70 — the most consequential financial decision for many retirees

The Situation

The Claiming Decision

Social Security benefits can be claimed any time between 62 and 70. Claiming early reduces the monthly benefit permanently. Claiming late increases it permanently. The break-even analysis — when delayed claiming's higher monthly payment catches up to the accumulated earlier payments — is the core of the optimization, but it is not the only factor.

Social Security is not a take-it-now-while-you-can decision. It is a longevity bet — and delaying is the right bet for most people in reasonable health.
— Worthune Decision Framework

You plan to claim Social Security at 62 or at Full Retirement Age without having modeled the break-even
You're married and haven't considered spousal benefit coordination strategies
You view Social Security as a supplement rather than a central pillar of your retirement income plan

About This FinBook

Claiming Social Security at 70 vs 62 produces a 76% difference in monthly benefit. Understand the break-even analysis, spousal strategies, and how to time your claim.

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