When to Start Receiving Social Security Benefitsby Rich White
When to start Social Security is a complex decision that should be personalized for each individual, and it can involve many factors, ranging from the potential to continue working, to attitudes about longevity and inflation. Permanent reductions for starting benefits before full retirement age are assessed on a monthly basis, so there is no hurry to make the start-date decision. By waiting to start until three months after age 62, for example, you can avoid three months' worth of permanent benefit reductions. Clearly, individuals have different levels of confidence in their ability to "invest the difference" successfully. Some people don't want the extra pressure of having to invest critical retirement assets in uncertain markets. As for the fear-based argument, Social Security benefits are not guaranteed, and Congress can make any future changes it wishes.