There's a huge benefit to postpone your social security income if you plan right, have the means to wait and have a IRA or 401K or other pension plan.
Currently, there's 10,000 a day, 70,000 week or 280,000 a month Americans retiring. Americans are living longer and it's no secret that planning for retirement is even more important than ever.
Retirement comes down to your wishes, wants and needs.
Wishes -Expenses for your wishes
Wants - Expenses for your comfortable retirement
Needs - Expenses for your needs in retirement (food, healthcare, shelter, clothing, vehicle)
GOAL= Protected Lifetime Income
What's your definition of retirement? Of course everyone has their own different answer. Here's mine - Allowing you to do what you want to do when you want to do it. Sounds good, doesn't it?
What's the purpose of Social Security Income? - to create income or cash-flow.
What is Social Security Income income? It's really an annuity, think about it, when you start taking distributions you get a check for as long as you live. The only decision you have is when and how to take it.
Majority of retirees have a financial security gap. Do they have protected lifetime income or probable income? Majority of Americans don't have protected lifetime income. What can go wrong?
Some Americans like government workers, military, fireman, police, etc... have pensions, the other 84% of Americans need to create "Protected Lifetime Income."
70% of Investors think that financial advisers have a responsibility to present products that provide a guaranteed lifetime income.
73% of investors who perceive guaranteed lifetime income as valuable or highly valuable.
42% of financial advisers who recommend annuities as part of retirement plans.
*Sources: 2018 GLIS study and 2018 LIMRA studies.
For those of you who have planned your retirement well and have other sources of income in addition to your Social Security Income, wait to claim your Social Security Income benefits! If your married and take your Social Security Income income at age 62 you get a 25% penalty in-force forever x2, why? Your spouse inherits your claiming decision. If you claim Social security at 62, your spouse has less income to live off of.
Option: The higher earning spouse postpone Social Security Income checks because if you claim at age 70, (vs age 62) the amount is double! Wait 8 more years you get twice the amount of income!
Only 3% of the population waits until age 70 to take advantage of this benefit. This is a great option, especially if longevity runs in your family. There's an 8% increase here every year with a COLA (Cost Of Living Allowance) Of course if both spouses don't have good health, claim as soon as you can.
I'm a big fan of annuities for the right client in the right situation, but what annuities today are currently paying 8% with a COLA? NONE!
Have you ever heard of the term "dragging chips?" Have you ever been to Las Vegas or a casino? When you are winning do you take some chips off the table and put in your pocket and save because if you lose whats on the table you have money in your pocket. With all the volatility the market today don't you think it's a good idea to drag
chips? Interest rates are low, isn't it a good time to drag chips?