Maximizing Returns: Should You Claim Social Security Early and Invest or Delay for Higher Benefits?

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• As you near retirement, you face a key decision: when to take your Social Security benefit.
• The prevailing wisdom is to wait until age 70 if possible, maximizing the benefit for life.
• “It usually takes 12 to 20 years to get even,” said Howard Erman, a certified financial planner.

Understanding the strategic timing for Social Security benefits can significantly impact your financial stability in retirement.

Reasons To Take Social Security Benefits Early

Howard Erman, a certified financial planner, discusses the potential financial benefits of claiming Social Security benefits before reaching the age of 70. By investing these early benefits, individuals might build a larger retirement fund than if they waited longer.

Balancing Longevity And Inheritance Goals

Erman also highlights considerations for healthy retirees who may live longer, suggesting that taking benefits early could be advantageous if maximizing inheritance is not a priority. This strategy, however, carries risks depending on market conditions and personal health.

Conclusion

This article provides insights into the pros and cons of early Social Security benefit claims, helping retirees make informed decisions based on their financial situations, health, and market conditions.

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