SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
November/December 2024
When Should You Start Social Security Retirement Benefits?
For many years, financial professionals have recommended that most people strive to delay taking Social Security benefits until age 70. The reason: Every year you delay starting benefits increases your eventual monthly check by 8%, in most cases. If you get your full retirement benefits at age 66, waiting until you are 70 will increase your monthly benefit by 32%.
Should You Delay Benefits?
If you have significant health problems that are likely to shorten your life expectancy, take benefits early. But, if you don't need Social Security income to live on, the conventional wisdom to delay starting Social Security benefits still makes sense for most people.There are Multiple Reasons to Delay Benefits:
- Social Security benefits are guaranteed by the U.S. government. Once your Social Security benefits are locked in, they aren't subject to market risk.
- Social Security benefits have a built-in inflation adjustment. The government grants a cost-of-living adjustment (COLA) each year, increasing Social Security benefits. Those COLA adjustments start at age 62, and you benefit from them whether or not you claim benefits at that time.
- The 8% credit you can earn each year by waiting is significantly higher than current interest rates. It could be difficult for you to get that kind of return from ordinary investments – and it wouldn't be guaranteed.
Remember, there's no benefit to putting off benefits after age 70, when your benefit amount is maxed out. If you decide to retire at age 68 instead, you'll retain the 8% annual increase to date, however it accrues monthly, so your birthday affects the final amount.
Alternatively, if you start Social Security retirement benefits at age 62, the earliest age allowed, your checks will be 27% – 30% less than the maximum amount if you were born in 1960 or later.
Deciding when to start taking Social Security retirement benefits is a big decision that cannot be changed, so consult your financial and tax professionals in advance.
*Those born prior to 1943 may receive a slightly lower benefit by waiting. https://www.ssa.gov/ planners/retire/delayret.html
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.