{"id":540330,"date":"2023-01-18T09:08:00","date_gmt":"2023-01-18T06:08:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/when-to-claim-social-security-the-age-old-question-answered\/"},"modified":"2023-01-18T09:08:00","modified_gmt":"2023-01-18T06:08:00","slug":"when-to-claim-social-security-the-age-old-question-answered","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/when-to-claim-social-security-the-age-old-question-answered\/","title":{"rendered":"#: When to claim Social Security? The age-old question answered."},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a33bdb850b31\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a33bdb850b31\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/when-to-claim-social-security-the-age-old-question-answered\/#%E2%80%9C_When_to_claim_Social_Security_The_age-old_question_answered%E2%80%9D\" >&#8220;: When to claim Social Security? The age-old question answered.&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/when-to-claim-social-security-the-age-old-question-answered\/#Is_it_better_to_claim_early_and_invest_those_funds_or_wait_to_claim_Social_Security_at_70\" >Is it better to claim early and invest those funds or wait to claim Social Security at 70?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/when-to-claim-social-security-the-age-old-question-answered\/#Jessica_Hall\" >Jessica Hall<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9C_When_to_claim_Social_Security_The_age-old_question_answered%E2%80%9D\"><\/span>&#8220;: When to claim Social Security? The age-old question answered.&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Is_it_better_to_claim_early_and_invest_those_funds_or_wait_to_claim_Social_Security_at_70\"><\/span>\n  Is it better to claim early and invest those funds or wait to claim Social Security at 70?<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001569821\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001569821\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Choosing when to claim <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security is a major financial decision that will affect your finances for the rest of your life. So, when\u2019s the best time to start collecting for the best return?<\/p>\n<p> The short answer is wait until 70 to claim Social Security.<\/p>\n<div class=\"paywall\">\n       The long answer is that claiming as early as possible \u2014 at age 62\u2014and investing that money still is unlikely to beat the returns seen from waiting for a larger payout, according to a new study in the Journal of Financial Planning.<\/p>\n<p>\u201cBefore the study, someone would say \u2018invest Social Security benefits and earn 10% a year instead of delaying\u2019 as if that were the answer. But most people don\u2019t invest 100% in stocks and you\u2019re not promised to get those returns,\u201d said Wade Pfau, professor of retirement income at the American College of Financial Services and author of the Retirement Planning Guidebook.<\/p>\n<p>\u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a>ly, wait as long as possible and you\u2019ll get a better outcome than investing,\u201d Pfau said.<\/p>\n<p>The study reaffirmed what Pfau, the study\u2019s co-author, suspected: it\u2019s best to wait until 70 to claim Social Security, if possible, if you want to have a better return and leave the largest inheritance or \u201clegacy\u201d to your family.<\/p>\n<p>\u201cIf the claimant does not expect to spend down their entire investment portfolio during their lifetime, which claiming strategy ultimately leaves more inheritance?\u201d asked the study in the Journal of Financial Planning.<\/p>\n<p>In order to delay claiming your Social Security, spend your savings in your 60s in order to wait and get a larger Social Security payout. That still makes more sense than taking Social Security early, the study found.<\/p>\n<p>Proponents of taking Social Security early suggest that a financial adviser could invest the benefits and earn a higher return for their clients over the long run. But Pfau cautioned that that is not common or likely.\u00a0<\/p>\n<p>\u201cClaiming early can lead to a better outcome, but it is not common and should not be expected,\u201d the study said. \u201cPeople tend to be overconfident about their investing prowess.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cTo generate the returns needed to beat the benefit of delaying Social Security, there would need to be a high tolerance for risk and an aggressive asset allocation, not to mention plenty of discretionary wealth,\u201d the study said.\u00a0<\/p>\n<p>Other fans of claiming benefits early worry that the Social Security Trust Funds will dry up and there won\u2019t be funding available when it\u2019s their turn to start collecting. The Social Security Trust Funds are expected to be depleted around 2034.<\/p>\n<p>\u201cWhile the current underfunding of the Social Security system remains an important consideration, much of the literature acknowledges that there are better planning strategies than simply claiming Social Security as soon as possible in order to get the benefits before they go away,\u201d the study said.<\/p>\n<p>Arguments for claiming early also cite reasons such as the person needing the money and the loss in benefits caused by a premature death. Of course, if you had a medical reason, or no alternative funds, claiming Social Security early might be the best choice, the study said.<\/p>\n<p>According to AARP, a person born on Jan. 1, 1961, who has averaged a $50,000 annual income would get a monthly benefit of $1,386 if they file for Social Security at 62, or $1,980 at their \u201cfull retirement age\u201d of 67 or $2,455 at 70.<\/p>\n<p>\u201cDelaying Social Security can be framed as longevity insurance that helps to support the increasing costs associated with living a long life. It provides inflation-adjusted lifetime benefits for a retiree and a surviving spouse, and these monthly benefits will be 77 percent larger in inflation-adjusted terms for those who claim at 70 instead of at 62.\u201d the study said.<\/p>\n<p>However, only 5% of men and 7% of women wait until 70, according to the Social Security Administration. Over a quarter of men and just under a third of women take Social Security as soon as they are eligible at age 62.<\/p>\n<p>\u201cReally, waiting is the key,\u201d Pfau said.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Jessica Hall\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/jessica-hall\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:jessica.hall@marketwatch.com\",\"text\":\"jessica.hall@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Jessica_Hall\"><\/span>Jessica Hall<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"274_MW\" author-name=\"Jessica Hall\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fwhen-to-claim-social-security-the-age-old-question-answered-11673989627%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-717F-41DCD3201D67%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;: When to claim Social Security? The age-old question answered.&#8221; Is it better to claim early and invest those funds or wait to claim Social Security at 70? Choosing when to claim Social Security is a major financial decision that will affect your finances for the rest of your life. So, when\u2019s the best time&#8230;<\/p>\n","protected":false},"author":1,"featured_media":540331,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-704865\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-540330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=540330"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/540331"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=540330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=540330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=540330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}