Early Social Security?

Transcript
00:00:05
Well, welcome everybody to this edition of Cornerstone Clips. Today, I’m going to talk to you about Social Security. We get the question a lot about when to receive Social Security clients come in.
00:00:20
Hey Matt, when should I begin receiving Social Security? If I’m targeting retiring at age 62 because age 62 is the earliest you can begin receiving Social Security, and so people want to know the pros and cons of beginning it right away.
00:00:36
What I typically ask people when we are having this conversation is when do you want to have the most money? Do you want more money prior to age 78 or more money after the age of 78? Because that’s where the break even falls. We’ve ran thousands of these break evens and.
00:00:56
If, prior to the age of 78, if you begin receiving Social Security in the circumstance you retire at 62, if you begin receiving Social Security at 62, you would pull more money out of the system.
00:01:10
By age 78, after age 78, you would have benefited dollar for dollar by delaying benefits. So that’s why I posed the question of do you want more money prior to 78 or after? But there are things that you need to take into consideration as you’re trying to make this decision for yourself is.
00:01:32
Longevity. How long do you feel that you are?
00:01:36
Going to live.
00:01:37
And what is your family history? Cause if you have family history of living to 95 well, in that scenario you would pull more money from the Social Security system if you delayed.
00:01:40
Yeah.
00:01:50
Right.
00:01:50
However, there are other circumstances that you have to take into consideration, like taking money out of your investment. So instead of receiving Social Security income, you would need to get that income from somewhere. You would have to take that money from your investable assets. Well, if you started receiving.
00:02:11
Social Security that would allow you to leave that money in your investments for the potential of return on those investments that could push the break even even further.
00:02:23
Back then, age 78. So a lot of different moving parts to answer the question there, there is not a perfect answer. It is an individual question for each circumstance and each person that we are talking to. So we can certainly help you out.
00:02:43
With that, some of the cons of receiving it.
00:02:48
Is you have to take into consideration while are you going to work part time because there could be offsets to that Social Security for receiving it early. So a lot of different moving parts. But certainly if you break it down in the simplest form, the question you should start with is do I want more money?
00:03:07
Prior to the age of 78 or after that can be a great starting point in helping you answer the question whether or not you should begin receiving Social Security early. Thank you for your time today and if you have questions, feel free to reach out to one of our advisors and we are here to help.