Social Security Benefits: Is It Worth It To Delay?

Tax Professionals' Resource
November 8, 2012 — 1,178 views  
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Social Security Benefits: Is It Worth It To Delay?

Deciding when to start collecting social security benefits is often a difficult decision to make and there are many factors that go into that decision. A person must look at their health condition, along with other factors. If the person is still working, that effects the decision. Whether they're in a high paying job that could be worth continuing for a few more years is another important consideration. Each choice of when to take social security benefits is an individual one and is based on unique factors.

The Pros of Waiting to Receive Social Security Benefits

- If a person can wait until age 70, their monthly social security payment will be
higher.

- If the person is healthy and enjoys working, they may want to keep doing
that. This helps to make sure that benefits received when they do retire are
higher.

- Maximizing amounts received each month allows a better quality of life in the
retirement years.

- Earnings limits come into play if a person decides to work while receiving the
early retirement benefits. They will only be able to earn a certain amount
annually or they will not receive full benefits due to their working wages.

The Cons of Waiting to Receive Social Security Benefits

- If a person has any reason to think that their life span might be shorter,
because of inherited conditions or other health issues, it may be best to
start getting benefits as soon as they are eligible.

- Factors like the windfall elimination provision affect the decision when a person
worked a job in the past where social security taxes were never taken from
their pay.

Advantages Of Waiting to Collect

There are definitely advantages to waiting as long as possible to collect social security benefits. Waiting is often advised for those in high paying occupations and who wish to continue working to maximize the eventual amount they will receive per month. Higher social security payments per month allow more freedom to do the things a person may wish to do in retirement like travel.

Living out retirement years in comfort and securely is the desired goal. Decisions about when social security benefits should start are highly personal and are best made on an individual basis. Having a 401K plan to withdraw from in retirement is also recommended along with investments in annuities to have a secure and enjoyable retirement.

Tax Professionals' Resource