Should I Wait Until Age 70 To File For Benefits, Or Continue To Contribute To My 403b Plan?

Feb 19 2017 - 12:45pm

Which would be financially better? Work till age 70 then collect social security or start collecting at 66.5 (FRA) and continue to put at least 5% of my salary which my employer matches into a my 403b? I may also cut back to part time at 66.5. Currently, 5% equals approximately $4400/year. Thank you. Sincerely, Sue

Hi Sue,

Ideally, those shouldn't be mutually exclusive options. The best option may well be to do both, that is continue to work and contribute to your 403b plan, and wait until age 70 to start drawing your Social Security retirement benefits. If your full retirement age (FRA) is 66 & 1/2, your retirement benefit rate would be 28% higher at age 70 than it would be if you started drawing at FRA, and that higher rate would continue for as long as you live.

You may want to strongly consider running the maximization software available on this website. That way you can explore all of your filing options in order to be sure that you choose the best strategy.

Best, Jerry