Taking the Long View on Benefits

Everyone wants to live longer, but few consider the financial planning implications of doing so. Living longer requires careful planning when you’re making the crucial decision of when to file for Social Security benefits. While sometimes filing early is necessary, you should make sure you know all of your options and understand when your retirement dollars are at risk.

Before filing for Social Security benefits as a retiree, you should determine the break-even point. The break-even point is the point in time that income received from Social Security is equal for a person filing at age 66 versus filing at 62 – usually 78. Essentially, if you fulfill your dreams of living longer, or at least past 78, you won’t lose retirement income in waiting until 66 to file.

The likelihood that many, if not most, retirees will live well past 78 is high, so they should plan accordingly. The key to planning when to file for your Social Security benefits is always going to be education. The better educated you are about your unique situation, and the more information you have, the better armed you’ll be to make the right decisions when it comes time to file.

Learn more about how to take the long view on your benefits in our article, “Take long view on benefits,” in Columbia Daily Tribune.

As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.

If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free. 

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This article is the property of Clarity Financial LLC.