Social Security: The Long Game - How Waiting Until 72 Can Pay Off | Affinity Capital

When it comes to Social Security, there is a lot of debate about the best age to start taking benefits. Some people believe that it is better to start taking benefits early, while others believe that it is better to wait.

There are a few factors to consider when making this decision, such as your life expectancy, your health, and your financial situation. If you have a long-life expectancy and you are in good health, then you may be able to afford to wait to take Social Security. This is because the longer you wait, the larger your benefits will be.

For example, if you start taking Social Security at age 62, you will receive 25% less than if you wait until your full retirement age of 67. And if you wait until age 70, you will receive 32% more than if you start at 62.

Of course, there are also some risks associated with waiting to take Social Security. If you die before you reach your full retirement age, your spouse or dependents will not receive any survivor benefits. And if you need money in retirement, you may have to rely on other sources of income, such as savings or a pension.

Ultimately, the decision of when to start taking Social Security is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.

If you are considering waiting to take Social Security until 72, here are some of the potential benefits:

• Receive larger benefits
• More time to save for retirement
• Work longer and earn more money
• Delay the onset of Social Security taxes

However, there are also some potential risks to consider:

• May not live long enough to collect the full benefits
• May need money in retirement and must rely on other sources of income
• Spouse or dependents may not receive any survivor benefits if you die before your full retirement age

In addition to the factors mentioned above, there are a few other things to consider when making the decision of when to start taking Social Security. These include:

• Expected retirement income from other sources, such as a pension or savings
• Health and life expectancy
• Personal risk tolerance
• Estate planning goals

It is important to weigh all these factors carefully before deciding about when to start taking Social Security. There is no right or wrong answer, and the best decision for you will depend on your unique circumstances.

We are always glad to work with you on these decisions and to coordinate with your tax professional to determine the most optimal course of action.