Hi, I’m David Hovis, financial advisor at Hovis & Associates. This video is the last one in a series about Social Security. Today, I’ll discuss the one big reason why it might make sense to delay claiming your Social Security benefit until age 70.
In our earlier videos, we discussed reasons for delaying claiming your benefit – maybe you are still earning income, or you have other sources of retirement income to cover your expenses. But some clients still can’t understand why they should delay claiming their benefit as long as possible. The reason is simple: LONGEVITY.
Statistically speaking, the average life expectancy of a male in the US is 76.2 years and 81.2 years for a female. However, the median life expectancy for a 65-year old man is 83 and for a 65-year old woman is 86. Remember, this is a median age, so half of the 65-year olds will live longer than this. That is why it’s so important to plan for a long retirement. And part of planning for retirement means planning when to draw Social Security.
The reasons for delaying a benefit are valid up until you reach the age of 70. After age 70, there is rarely a reason to delay drawing your benefit. You are no longer subject to an earnings limit after you reach full retirement age. And more importantly, your benefit will NOT continue to grow at 8% per year past age 70. For most people, it’s at this time that you should sign up to start receiving your Social Security benefit if you haven’t done so already.
For help with planning for your retirement, call Hovis & Associates to schedule a meeting. I hope you’ve enjoyed this series of short videos on Social Security. If you missed one, you can check them out on our website, YouTube or social media.
Until next time….