Poll Recap: Do You Plan On Waiting To Collect Social Security?
65% of readers answered yes to that question in last week’s poll.
According to AARP and the Financial Planning Association, 90% of retirees know that waiting to collect Social Security will get them a bigger benefit – but only 5% know how much bigger.¹
Here’s a look at how postponing Social Security can increase your monthly check—and thus reduce your reliance on your retirement portfolio:
This hypothetical example assumes the retiree was born between 01/01/1943 and 12/31/1954, is eligible for $1,500 in monthly benefits at full retirement age and requires $5,000 in monthly income.
If They Collect As Early As Possible
They’d have to rely on their retirement portfolio for 78% of their monthly income.
If They Wait Until Age 70 To Collect
They’d only have to rely on their retirement portfolio for 60% of their monthly income.
The bottom line: Waiting to collect your Social Security benefit can be beneficial to your portfolio.
¹Social Security Planning in 2015 & Beyond: Perspectives of Future Beneficiaries and Financial Planners, 2015.
²U.S. Social Security Administration.