Why You Need to Rethink When to Start Your Social Security Benefits

A necessary and critical discussion to have with a financial advisor:

When is the best time for you to start Social Security Benefits?

A quote from Ric Edelman a New York Times bestseller and award winning financial advisor:

LINK

“And Congress is making it even more tempting to start receiving benefits just as soon as you can. We all know that the Social Security Trust Fund is being depleted. It'll be gone by 2032. And when that happens, all Social Security benefits are going to be cut 25%.

Congress could fix this problem right now, you know, but it refuses to do so because of the political backlash. Nobody wins elections by cutting Social Security benefits after all. Democrat President Joe Biden and Republican House Speaker Kevin McCarthy have both said that cuts to Social Security are off the table. And frankly, nobody believes them because the only way to avoid cuts is to massively increase taxes, as if that'll go through Congress.

So all this means that everybody's expecting cuts in benefits between now and 2032. And on that basis, shouldn't you start your benefits now? So at least you get your full amount before the cuts occur? Nobody knows the correct answer to that question.

But if you're a financial advisor, you need to run the numbers for your clients who are 62 and older, who haven't yet started their Social Security benefits. Would they be better off starting Social Security now because of the trust fund crisis? Or should they wait until after the Social Security Administration cuts benefits? This calculation will alter the retirement income strategy you recommend for your clients.



Generally, if you are the client or investor, you need to ask a financial advisor to run that calculation for you. Don't try to do it on your own at home. Your advisor uses sophisticated Social Security planning software. Trust me, it's out of your league. Get it right because we're talking hundreds of thousands of dollars over the rest of your life. That will have a huge impact on your financial future.”