"The right time to start taking out Social Security benefits will differ for just about everyone. Indeed, depending on one's situation, the optimal age to start opting in might be somewhere in the middle, rather than the extremes. Either way, meeting up with the financial adviser seems like a smart way to better understand the trade-offs between opting in younger rather than later."
"In a prior piece, I highlighted the opportunity costs of waiting too long, but did acknowledge that waiting was the best financial move on paper. Of course, not everybody is going to be in decent enough shape at the age of 70 to start spending down considerable sums of the nest egg. In fact, there might even be a risk that one would not be able to do some of the things on their bucket list."
"In this piece, we'll have a look at a scenario that might just allow one a shot at scoring a return that's greater than the 8% that one would have gotten by delaying Social Security by a year. Indeed, the 8% annual boost per year that one delays Social Security is one that's free from risk. And, it's pretty hard, if not impossible, to land 8% when not taking on any risk."
Optimal Social Security claiming age varies by individual and can be middle-aged rather than extreme early or late. Delaying benefits up to age 70 yields about an 8% risk-free annual increase in benefits. Some retirees may be unable to wait until 70 due to health, lifestyle, or bucket-list concerns and may prefer earlier income or improved liquidity. Opting in early and investing the difference, for example in dividend stocks, can offer a chance at returns exceeding the delay boost but introduces market risk. Consulting a financial adviser helps evaluate trade-offs between guaranteed increases and personal needs.
Read at 24/7 Wall St.
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