Should I File At Age 66 Or Age 70?

Mar 14 2017 - 6:30am

I was planning to begin Social Security payments when I turn 66 later this year.
Looking at some of the items posted on your web site, it looks like I would be better off drawing on after tax savings and IRA money so that I can wait until age 70.
How can I construct a model to look at this?
I tried to use your sample software. I didn't know how to estimate rate of return for stock market investments. (Should I use the standard 5-7%?)
When I got done, I wasn't sure what the result told me.


Larry believes that it is generally better to wait until your benefit rate tops out at age 70 before claiming your retirement benefits, but you may have other filing options in the meantime if you married or were married in the past. Social Security retirement benefits increase by 8% per year from full retirement age until age 70 if you defer filing, which is likely a better rate of return than you can expect from other investments. For a more detailed explanation of Larry's thoughts on this subject, refer to the topic 'Collecting Benefits Early And Investing Them'.

You may want to consider subscribing to the maximization software available on this website in order to explore all of your filing options. After subscribing, you can submit any questions that you have regarding use of the software or your results via an online contact form in the help menu.

Best, Jerry