CLIENT STORY: Pre-Retirees

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Deciding When to Take Social Security

Jay and Tawny are busy corporate professionals, 62 and 56 years of age, respectively. They enjoy what they do but are thinking about retiring in the next few years so that they can spend more time with their grandchildren and traveling. Now that Jay is eligible to begin receiving Social Security, we evaluated Social Security filing strategies for their specific situation.

Most Social Security recipients can begin receiving benefits between the age of 62 and 70. However, the decision can be tricky since none of us know how long we will live, and there is a tradeoff regarding when we begin receiving benefits. One can take a lower amount at a younger age or receive a higher amount the longer one waits to begin (up to age 70, when the benefit caps out).

In order to help Jay and Tawny make the best decision for their specific situation, we used our financial planning software to model five different scenarios showing the results of them receiving Social Security at various ages. As a result, they decided to use the “File and Suspend” strategy that we recommended. Their decision could result in more than $100,000 of additional income over their lifetimes, compared with taking Social Security when they first become eligible.

Disclaimer: These stories are for illustrative purposes only and are not real client stories.