Many Robin Weingast & Associates, Inc. clients want to know the best time to start receiving retirement benefits. Not only do our clients have to make this decision for themselves, their employees often ask for advice on how to maximize the benefits of their retirement plans. In fact, this is such a common question that the Social Security Administration has prepared a short publication as a guideline.
Some highlights from their recommendations:
1) This decision is personal and involves a careful consideration of many factors:
– Do you want a smaller amount of money each month, sooner or a larger monthly payment for a shorter duration?
– What are your current cash needs (both personally and for your family)?
– Do you have additional income sources?
– What is your current state of health?
-Do you plan to keep working? This will impact your monthly benefits if you elect to receive them before your full retirement age.
2) Life expectancy is longer than it used to be. This is great news that also means your retirement may be much longer than you think. Approximately one-third of all people who are 65-years-old today will live to be 90. It’s important to consider this when determining a timeline for receiving benefits.
3) Your decision may impact your family—both your spouse and your children who may be eligible to receive benefits.
4) While your total overall benefit distributions will not change, your monthly payments will differ significantly based on when you opt to receive benefits.
This chart is from the Social Security Administration’s article and gives you a breakdown on how your benefits differ based on the age at which you opt to begin receiving benefits. It assumes a benefit of $1,000 at a full retirement age of 66. Notice that receiving benefits at 70 versus 62 results in a 32% monthly increase.
The article explores each of these points in depth. If you would like to read more, you can download the full article here.
Need to talk?
Online resources are great, but as always, the Robin Weingast & Associates, Inc. team would be happy to discuss a plan that works for you. We would also be happy to help you provide your employees with resources to help them make the best decision about when to receive retirement benefits. Contact us today to ensure that your retirement is personally and financially fulfilling.