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5 Ideas For Clients To Delay Social Security Until Age 70
Social Security generously rewards those who wait . By Paul R . Samuelson and Alyson Dorosky
IT ’ S IMPOSSIBLE TO GET IN FRONT OF EVERY FINANCIAL decision your clients make , but on the topic of Social Security , it ’ s worth stepping in . Only 5 % of men and 7 % of women wait until age 70 to file for retirement benefits , despite the fact that Social Security generously rewards those who wait until that age .
Undeniably , many people need the benefits in their 60s to pay bills or blunt the effects of inflation . People with shortened life expectancies may choose to claim benefits as soon as possible for obvious reasons .
But those who could delay often don ’ t . They may be eager to collect from a system they ’ ve been paying into since their teens or 20s . Or they haven ’ t evaluated all their options , and by the time they come to you they have already filed for benefits .
Depending on a client ’ s situation , it might be time for a tough conversation to suggest one or more of these five ways clients could delay filing for Social Security or , if possible , stop or suspend their benefits .
1 . Your clients could keep working . Layoffs dominate the news today , but many organizations still can ’ t find enough qualified workers . Some have woken up to the benefits of retaining experienced employees for their organization ’ s good .
You might suggest to clients that they don ’ t leave their current job if they can stay , or that they find a way to semiretire and earn money to bridge the gap until they reach 70 . You may have clients who could “ unretire .”
An overlooked benefit of working is that clients continue to pay into Social Security and acquire the “ credits ” that ultimately determine their benefit when they file .
Some work status changes could mean clients lose their employer-sponsored benefits . You ’ ll need an associate who can help clients with health insurance . Clients who are at least 65 are eligible for Medicare . If under 65 , they may be able to buy an
48 | FINANCIAL ADVISOR MAGAZINE | JUNE 2023 WWW . FA-MAG . COM