Social Security

Terry,

You mentioned on WGN Radio with Bob and Marianne if you delay taking Social Security benefits the monthly payment can increase up to 8% by full retirement age. Should the amount of money you would gain in 6 years be factored in if one were to begin collecting sooner? It would take several years to make up that difference.

Thank you.

Terry Says:  That all depends on how long you live!  There’s a great calculator at T. Rowe Price and another at SocialSecurity.gov, showing you the “breakeven” time for taking SS early.  But the real impact is on future cost-of-living increases (assuming future inflation) — They will come from a higher base if you wait longer to start taking SS.  And that will have a HUGE impact!