The Optimal Time to Start Taking Social Security

Your entire working life the government has been taking part of your paycheck to fund your future retirement income through social security. You are eligible at age 62 to start receiving those benefits but the longer you wait the more income you receive for the rest of your life.

If you were born after 1960, you get full retirement benefits at

67. If you start at age 62, you only get 70% of your benefit but you receive payments five years earlier. On the flip side if you wait until age 70, you will make

24% more per year plus annual inflation increases.

Many people start taking benefits early because they fear dying

prematurely and leaving money on the table. Other people simply value receiving money now over receiving potentially more money

later. I disagree with this thinking.

The reality is social security income addresses two of the biggest risks that retirees face, inflation risk and longevity risk.

Social Security pays as long as you live and as we have seen this