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Understanding the “Break-Even Age” and How it Applies to Your Claiming Decision - theglobeandmail.com; The Motley Fool
The “when to file” question is one of the more frequent ones we receive here at the AMAC Foundation Social Security Advisory Service. And although we know it’s frustrating, our answer universally is “it depends.” Most financial planners will tell you to wait until age 70 if you can. After all, the delayed retirement credits add substantially to your monthly payout. If you can survive financially while you wait, then the higher monthly benefit is a just reward, but again, it depends. Will your life span be long enough that the total amount you receive after claiming at age 70 exceeds the lower payments you’ve been deferring, perhaps as long as eight years? We generally don’t know the answer to that question, but it’s still important to weigh it when making the decision that best serves your situation.
That’s where calculating your break-even age comes in. You know it’s not precise, since it’s based on assumptions, but it does give you a basis for understanding the pros and cons of selecting a specific age to begin collecting benefits. The Motley Fool’s editorial staff has published an article that can help you comprehend this topic, and you can access it here. Also, if you’d like to see a break-even analysis tailored to your situation, just contact the AMAC Foundation’s free service for assistance.