Professionally Speaking

Social Security Is Worth the Wait

Anyone considering retirement and drawing Social Security retirement benefits should have an understanding of how this important decision will affect his or her family and themselves. For someone whose full retirement age is 66, drawing benefits at age 62 permanently reduces an individual’s per year base benefit by 25%. While it is true that some people needed to retire, or found themselves in situations where the decision was made for them, it is more financially advantageous to wait. “If you wait, you will receive a guaranteed increase each year of 7% to 8% per year until you reach age 70,” says Raymond James Senior Tax and Estate Consultant in Wealth Solutions Susan Hartman.

Of course, receiving Social Security benefits is only a supplement to retirement income from other sources, including investments and retirement plans. And while some expenses will go away, others will remain – and increase – like healthcare and Medicare. “If you can afford to wait, do so, even if you have to spend assets while you wait,” Hartman says in this edition of Professionally Speaking, hosted by Larry Pugliese.

If you would like to discuss the content of this edition of Professionally Speaking, or if you have questions about your portfolio or the markets, please contact a Raymond James financial advisor.

All expressions of opinion reflect the judgment of the Equity Research Department of Raymond James & Associates at this time and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. Other Raymond James departments may have information that is not available to the Equity Research Department about companies mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this presentation's conclusions. We may perform investment banking or other services for, or solicit investment banking business from, any company mentioned. Investments mentioned are subject to availability and market conditions. All yields represent past performance and may not be indicative of future results. Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd. are wholly-owned subsidiaries of Raymond James Financial.

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