The Best Age to Start Social Security

I've had a lot of people ask me what the best age is to start receiving payments from Social Security and I never really had a good answer -- until I spotted this piece from  Money Central. Here's a quick overview:

To squeeze the most from Social Security, your decision on when to start collecting depends on whether you are married -- and whether you are a man or a woman.

Now, the bottom line:

By Munnell's calculations, anyone who expects to live to age 80 or longer will enjoy a greater discounted present value in benefits by starting at age 66 than at age 62.

Munnell argues that since women, on average, will live longer than the 80- to 81-year break-even age (for realizing a profit by waiting), and that one-third of all women will live into their 90s, taking benefits later is a good idea.

This is a VERY brief summary of the overall issue -- if you want more details (and believe me, there are a lot of details to be sorted through), click on the link above and read the entire article.

If you'd like more information on how to make the most of your retirement savings, see these posts:

• Key to Retirement: Sticking to It
• Save Now, Retire Rich
• The Real Retirement Secret (How to Maximize Your Retirement Savings)

Comments

[mary]

I am trying to decide whether or not to take social security in june when I turn 62, or wait until 66. I am financially secure, not wealthy, will have a pa teacher's pension, have some investments to draw on at age 70. I would like to be comfortable now and not have to wait to travel. also, that money would pay for my health insurance. So, what to do?

[FMF]

Mary --

I'll post your question next week and ask my readers for suggestions. They're a pretty good bunch and I think you'll get a lot of help.

[maribeth petery]

Did you get any comments about my former question? If so, where will I find them?

[FMF]

Yep. See here:

http://www.freemoneyfinance.com/2007/03/help_a_reader_w.html