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July 25, 2018
My parents recently hit lucky number 62 and with it came questions about social security. A couple of things that were important for them to note in their discussions about when to claim benefits were:
When to claim social security benefits is a complicated question and will vary for each situation. There are several other factors to consider including: life expectancy, other retirement savings, tax considerations, martial status, and income differences between spouses. In my parents’ situation, it made sense for my mom to claim benefits at 62 and start collecting her own benefits; then, once my dad starts claiming his benefits, she will receive up to 32.5% of his benefits.
According to a study done by the Society of Actuaries, a “rule of thumb is the older and/or higher benefits spouse will generally delay taking his or her benefit until age 70 and the other spouse may choose to claim at any time after age 62 based on other considerations.” This conversation will be had among many households in the near future as the Baby Boomer generation reaches retirement age. Consult with your financial advisor and your tax advisor to decide when is best for you to claim social security benefits. Give us a call with any questions!