The "Break Even Analysis" doesn't always tell the whole picture. The simple "break even" analysis looks at your total accumulated social security benefits. In other words, starting SS at age 62 with a lower payout versus delaying until a later age, like 70 with the maximum benefits. The "break even" analysis, typically suggests that your total benefits received, break even around the age of 78-82. So, if you have a long-life expectancy, you would be expected to receive more from Social Security, the longer you wait to start your benefits. But what that doesn't factor in, is the impact on your investments. If you need to start using your money from age 62 to 70, before your delayed Social Security kicks in, what is the long-term impact? That's why, when evaluating a client's optimal time to start benefits, I like to model in both scenarios to their personal retirement plan. One scenario, starting Social Security early, allows us to estimate how your investment portfolio will perform over time, versus a scenario that delays Social Security to age 70 and compare the long-term implications of both strategies. If you're thinking about starting your benefits early, give us a call!
When Should I Start My Social Security?
