Understanding Your “Breakeven” Point on Social Security Benefits - madison.com
“When should I file for Social Security benefits” remains the most frequently asked question we receive here at the AMAC Foundation Social Security Service…almost a quarter of the thousands of inquiries we receive each year raise this perplexing question. As is the case in most of the requests we receive, our response generally begins with the phrase “It depends.” That’s the reality of what everyone faces in making Social Security decisions, since so much of the program is situational, with everyone’s personal circumstances unique to them.
Most folks who’ve looked at Social Security know that filing early reduces monthly benefit payments, while delaying as long as you can–up to age 70, anyway–produces a higher monthly payment. In other words, filing early means more payments of a lesser amount versus fewer payments of a greater amount. Reporter Stefon Walters, in a post on Madison.com’s Business page, addresses the issue of “when to file” by wrapping it around a discussion of breakeven points–the point that “…occurs when the total amount you’ve received from larger, delayed benefit checks equals and begins to surpass the total amount you would have received by taking smaller checks earlier.” While the point of the article is not necessarily to sway your thinking in one direction or another, it does provide food for thought in analyzing the financial aspects of your “when to file” decision. Overall, a good analysis of the question and its implications. Read Mr. Walters’ article here…
As mentioned earlier, grappling with this decision doesn’t make you unique in any way. Our Social Security Advisory Services deals with it frequently, and stands ready to assist you by analyzing the breakeven point applicable to your personal situation. If you have questions, or need guidance on this or any other Social Security matter, check out our free-to-the-public service here… Our staff of trained and accredited Advisors will help you understand the complexities of Social Security.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.