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Delay to 70? Not So Fast - The New Case for Claiming Early

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Manage episode 511311980 series 1232333
Content provided by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP®. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP® or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Only about 4% of retirees actually wait until age 70 to claim Social Security, despite the financial benefits of delaying them.

This comes from an article by Derek Tharp at Kitces.com titled “The Flaws In Using A 0% Discount Rate To Justify Delaying Social Security”. It takes a hard look at why the common advice to “wait until 70” might not always hold up in the real world.

Tharp argues that the assumptions baked into much of the research—especially the idea that a future Social Security dollar is worth the same as a dollar today—can tilt the math toward delay, while ignoring very real risks like mortality, sequence of returns, policy changes, and even health-span.

I'll share the points and give my commentary on the topic. Thanks for hitting the Play button!

Then in our listener question segment: We’ll talk about whether it ever makes sense to use a SPIA to bridge the gap until Social Security. What are the pros and cons, and would I ever recommend one?

Resource: Article from Derek Tharp on Kitces.com: Why Delaying Social Security Benefits Isn’t Always The Best Decision

Connect with Benjamin Brandt

Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart

Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

  continue reading

405 episodes

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iconShare
 
Manage episode 511311980 series 1232333
Content provided by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP®. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Benjamin Brandt CFP®, RICP® and Benjamin Brandt CFP® or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Only about 4% of retirees actually wait until age 70 to claim Social Security, despite the financial benefits of delaying them.

This comes from an article by Derek Tharp at Kitces.com titled “The Flaws In Using A 0% Discount Rate To Justify Delaying Social Security”. It takes a hard look at why the common advice to “wait until 70” might not always hold up in the real world.

Tharp argues that the assumptions baked into much of the research—especially the idea that a future Social Security dollar is worth the same as a dollar today—can tilt the math toward delay, while ignoring very real risks like mortality, sequence of returns, policy changes, and even health-span.

I'll share the points and give my commentary on the topic. Thanks for hitting the Play button!

Then in our listener question segment: We’ll talk about whether it ever makes sense to use a SPIA to bridge the gap until Social Security. What are the pros and cons, and would I ever recommend one?

Resource: Article from Derek Tharp on Kitces.com: Why Delaying Social Security Benefits Isn’t Always The Best Decision

Connect with Benjamin Brandt

Follow Retirement Starts Today in:Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart

Get the book!Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

  continue reading

405 episodes

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