This week, I’m explaining social security retirement benefits and a few of the more important considerations you’ll want to keep in mind as you decide when to begin collecting your checks. 

Today, I’m talking about one of the most costly mistakes people make with their social security decision. 

Recently, I met with a husband and wife couple. This couple have been clients for many years and they are retiring next Spring! I’m so excited for them to retire, and they are excited to start a new chapter in their lives. 

When we met, we had a planning discussion and made some important decisions about retirement. One of those decisions was about when they would start taking social security. They are retiring in their early 60s and they just assumed that they would start social security as early as possible, at age 62. 

It wasn’t until we ran the numbers that they realized that this would be a massive mistake. 

If they live to their life expectancy, they would collect nearly $400,000 less over their lifetime in social security benefits if they collect at age 62 compared to waiting until their full retirement age. 

If they wait until age 70, that difference in lifetime income jumps to nearly $600,000! 

Here’s the point: In nearly every circumstance, unless you have no other choice, no investments to provide income and fill the gap while you wait, or you are in poor health and don’t expect to live past your early to mid-70s, taking social security as early as possible is usually a mistake! 

It’s important that you understand not just the current differences in income - but also the cumulative lifetime income differences of starting social security at different ages. 

To make this easier for you, I have a special treat if you’re listening today: Send me your social security monthly benefit amount at your full retirement age, and I’ll run the numbers for you! I’ll show you the impact of taking social security at different ages, so you can make a smart social security decision! 

I normally charge for this type of analysis, but for listeners of the One Minute Retirement Tip, it’s free. no strings attached. 

Just send an email with your full retirement age monthly benefit amount to [email protected].

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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