You have a client who is 62 years old and in good health. He can draw SS pay che

Question

You have a client who is 62 years old and in good health. He can draw SS pay check in his 62 birthday of $1475 per month. He has sum $400,000 savings in various retirement account. He is currently making $87,000. His monthly expenses amounts to 80 percent of his after tax paycheck. Please consider advising him as to when to retire. Social security pay check as it is indexed for cost of living adjustmnet is expected to go up by roughly 8% per year until age 70 in case he contributes to the system without early retirement withdrawal at 62 or at age 66. He can retire in his 66 birthday, or can wait longer until age 70. What is your take?

Explanation / Answer

Generally if you can afford it and plan on living a long time (and who doesn't) it is always a good idea to defer taking social security payments until you hit 70. Most people don't, but if you live past 80 or so, you will make more money out of the system if you defer payments until 70.

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