If a person must rely on Social Security in order to meet their budgetary needs for retirement, then they should delay as long as they possibly can. For each year an individual delays, they receive eight percent more in benefits.
Jefferson City, Missouri (PRWEB) May 31, 2016
The answer to the often-debated and critical question “when should I start taking Social Security benefits?” can be simplified, says Bert Doerhoff, CPA, founder of Aura Wealth Advisors. Doerhoff recently commented on a USA Today article entitled 3 Great Reasons to take Social Security at 62, providing his own insights for making the decision easier.
The article encourages readers to begin receiving Social Security benefits at age 62 in certain circumstances:
- An individual has reason to believe they may receive more in lifetime benefits by not waiting (such as someone that thinks they won’t live as long as a typical recipient).
- It supports a lifestyle decision, such as choosing to receive benefits while an individual is most likely to be in good health to enjoy them.
- Recent rule changes that may affect an individual’s incentive to wait, such as file-as-a-spouse rule and the file-and-suspend strategy.
Doerhoff says that over years of extensive reading about the options connected to when an individual should choose to begin receiving Social Security, he has come to two main conclusions that can help simplify the decision-making process.
“If a person must rely on Social Security in order to meet their budgetary needs for retirement, then they should delay as long as they possibly can. For each year an individual delays, they receive eight percent more in benefits,” says Doerhoff. “This can really make a difference across their remaining years.”
Second, he says if an individual has saved and accumulated wealth and does not need to rely on Social Security for retirement, then they should receive benefits as soon as they can, without exceeding the earned income limits that would require a repayment of Social Security. Social Security can be thought of as a “use it or lose it” benefit.
“If you draw early and invest the funds, there’s a good chance you’ll come out ahead. After all, it takes about 12 years for the higher delayed benefit to catch up to the lower early benefit in total,” says Doerhoff. “However, if you need Social Security funds in order to retire, put it off as long as you can. Eight percent is a great return.”
About Bert Doerhoff:
Bert Doerhoff, CPA, the founder of Aura Wealth Advisors, is a fee based investment advisor who works with families and small business owners to help them protect and grow wealth for life. He designs comprehensive tailored investment solutions with strategic defensive investment approaches that retain growth potential. Guided by fiduciary standards, he works with clients to build a legacy and deliver ever increasing cash flow in retirement that will protect their lifestyle from the effects of inflation.
Contact Bert Doerhoff, CPA, by email at bdcpa(at)AccuBiz(dot)net; by phone at (573) 634-4006; or learn more at http://www.AuraWealth.com.