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Relying on investment returns to postpone claiming Social Security
Delaying your claim to Social Security benefits yields a significant financial advantage, because your benefit increases by 8% for each year you wait past your full retirement age (up to age 70). But unless you’re still working at a high paying job, waiting for a higher Social Security benefit may prove financially difficult. According to many financial advisors, one way to gain guaranteed income when postponing your Social Security claim is to use a “single premium immediate annuity” (or “SPIA”) rather than draw down your nest egg too quickly. But other financial advisors suggest that a better option might be to use certificates of deposit (CDs) to allow more liquidity with your invested capital. This debate is detailed well in this CNBC Personal Finance article by Sarah O’Brien. Click here to read more.