One of the most tried-and-true techniques for boosting overall income in retirement is delaying social security.
The longer you wait, the more lifetime income the program will provide for you. For retirees, the added boost in income over their retirements can be a godsend – especially with longevity rates continuing to rise.
The problem is that while many of us would love to delay social security until we are 67, or even 70, most retirees can’t make it that long. In fact, many investors are forced to retire earlier than planned, which is a huge drag on income potential throughout our golden years.
Luckily, it doesn’t have to be that way. There are a few ways to “bridge the gap” and kick the can when taking social security. In the end, if you’re able to wait, you’ll end up making more income when it really counts.
Forced to Retire
Talk to any person planning for retirement and the number 65 comes up a lot. That’s the age for full retirement when it comes to social security. It’s at that point that you’ll get 100% of your benefits. Every year you wait past that – up until 70 – your benefit will earn delayed retirement credits worth 8%. Everyone likes getting a raise for essentially doing nothing. And it makes perfect sense to wait until the absolute last second to begin tapping into social security.