We specialize in working with people who are on the cusp of retirement. Many of these people come to us because they have big fears about the future. What are your biggest fears about retirement? Being bored? Experiencing health issues? Wrinkles? Dementia? Death?

From a planning perspective, your biggest fear shouldn’t be any of these. In fact, your biggest fear should be immortality—or at least living way longer than you expected. It’s no secret that people are living much longer lives that we ever thought we would. Men who reach age 65 are expected to live to an average age of 86.6 and women to age 88.8. If you retire at 65, there’s a good chance, you’ll spend 20+ years in retirement.

The greatest danger you face is outliving your savings. What can you do about it? One of the best ways to avoid financial ruin in retirement is to wait to collect Social Security. That’s because for every year that you delay your social security benefits, your benefit is increased by 8%. That’s a pretty massive raise. And yet, the vast majority of people take their benefits as early as possible—age 62.

What if you’ve already claimed your benefits? If you’ve already started receiving social security benefits are you are now coming to your senses, there’s hope. Unfortunately, if you claim at 62, you’re stuck until full retirement age. But once you reach full retirement age (somewhere around 66 or 67 depending on your date of birth), you can suspend your benefits and start them up again at or before age 70 and get that 8% bump each year your benefits are suspended.

Have questions about when you should file and what's the most optimal strategy for you? Call us today at 888-510-2362.

Sources: https://www.nytimes.com/2017/02/18/your-money/retiring-longevity-planning-social-security.html