This week, I’m talking about how to grow your income in retirement.

Today, I’m talking about one of the most impactful ways to grow your income in retirement, which is to delay starting social security for as long as possible. 

If you were born in 1960 or later and you wait to take social security until age 70, you can multiply your benefit at your full retirement age by 124%. If you’re older than that, it’s likely to be an even greater % increase. So let’s say your social security at full retirement age at 67 is $2,500/month. 

If you wait another 3 years to start collecting your checks, your monthly benefit goes from $2,500 to $3,100/mo.$600 more a month in income is pretty substantial. That’s about the same impact as saving another $200,000 for retirement when you look at what it would otherwise take to take another $600/month in income. 

When you extend this income difference over your lifetime, we’re talking well into a 6-figure increase in lifetime income if you wait. Anecdotally in working with clients, I’ve seen the lifetime income increase by as much as $400,000 or more compared to taking social security income as early as possible. 

The bottom line here is if you need more income in retirement, try to wait for as long as you possibly can to collect social security up to the age of 70, because every month that you delay will lock in a higher lifetime income amount. 

That’s it for today’s tip, but before you go let’s talk about something that’s top of mind - especially if you’re listening to my podcast... 

Here’s the reality - Planning for your retirement can be both exhilarating and terrifying. With all the excitement of thinking about the future comes an underlying worry--am I ready? That’s where my Retirement Success Forecaster comes in. Using data from this simple questionnaire, I’ll be able to tell you if you’re on track for retirement, and if not, what adjustments you can make today to live the retirement you envisioned.  

Getting a customized retirement forecast is easy. Just send me an email - [email protected]. I’ll send you the forecaster to complete, and once you send it back to me, you’ll receive your personalized results - for free!

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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