Using Social Security Strategically

Key Takeaways

• When you claim Social Security can significantly affect your lifetime retirement income.
• Delaying benefits may increase monthly income, especially for retirees with longer life expectancy.
• Bridging income needs early can help some retirees maximize benefits later.

Social Security is one of the most valuable retirement benefits available, partly because payments are adjusted for inflation. But when you claim benefits can significantly impact how much income you receive over your lifetime.

Benefits can begin as early as age 62, but delaying them increases your monthly payment—up until age 70. For some retirees, waiting can result in substantially higher lifetime income, especially for those who live longer than average.

The challenge is how to cover living expenses while you delay. Some retirees bridge this gap using temporary income from savings or guaranteed income sources, which allows them to hold off taking Social Security and maximize their benefit.

Deciding when to claim Social Security is a personal decision that depends on health, income needs, and other resources—but understanding your options helps you make a more confident choice.

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Disclosures:

This material is provided for educational purposes only and does not constitute investment, legal, tax, or insurance advice. It should not be relied upon as a recommendation to purchase, sell, or exchange any security or insurance product. Investors should consult their financial, tax, and legal professionals before making financial decisions.

Annuities are insurance products issued by insurance companies. Guarantees are subject to the claims paying ability and financial strength of the issuing insurer. Product features, limitations, fees, surrender charges, and availability vary by contract and carrier.