When should you collect social security benefits?

What if you had no need for your Social Security Income at all?

If you and your spouse have no need for the SS income or the assets you have saved to generate a cash flow because perhaps you have a large pension benefit that more than pays for your lifestyle, then that SS income possibly becomes discretionary investment capital.

Assuming you live to age 95 and the income was invested annually compounded at 5%.

Collecting $25,181 at age 62 would compound at age 95 to $2,116,895

Collecting $44,792 at age 70 would compound at age 95 to $2,244,685

In this example, if you never needed the funds and invested them at the same rate of return, and lived to age 95, it paid to wait. However, you would need to live until at least age 82 to have benefited from waiting. Once again, if either you or your spouse pass away prior to that, the lack of a survivor benefit on the lower income is a substantial difference.

Joe Favorito

Joe Favorito

Joseph Favorito is a Certified Financial Planner™ who began his career in the financial services field in 1997. Over the past two decades Joseph has worked for several New York stock exchange members. In 2011 he founded Landmark Wealth Management, LLC , a Long Island-based Securities Exchange Commission registered investment advisory firm.

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