Social Security Timing® evaluates all 81 election age combinations across 9 different election strategies and finds the highest lifetime benefit.
How much you receive from Social Security depends on three primary factors:
Since you can't go back and change your earnings record, and you have minimal control over how long you live, calculating an expected lifetime benefit largely hinges on when you elect.
In theory, if you elect early, you will get a smaller benefit for a longer period of time. If you elect later, you will get a larger benefit for a shorter period of time. For single people, the decision of whether to elect early or later is usually as simple as answering the question: do you think you'll live long enough to make waiting worth it? For example, if you decide to elect at 66, how long will it take for the larger payments to make up for the payments you missed from 62-65.
Single people can use a simple “break-even” calculator to determine how long they would have to live to make waiting worthwhile.
For married couples, however, the decision is much more complex.
Why? Because Social Security offers three distinct benefits for married people that these simple calculators ignore:
- Retired Worker Benefit: Based on your own earnings record
- Spousal Benefit: Provides your spouse with a benefit once you claim your own benefit
- Survivor Benefit: Provides your spouse with a benefit after your death
Virtually all of the simple break-even calculators in use today ignore the Spousal and Survivor benefits. More complex planning software includes spousal and survivor benefits but only for one combination of election ages. In short, neither tool offers a thorough analysis.
Social Security Timing® evaluates all 81 election age combinations across 9 different election strategies and finds the highest lifetime benefit.
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Brinker Capital.
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