Tips for Advising Couples Filing for Social Security Part 2
If you were given the opportunity would you take $1 today or $3 in a month?
Chances are you probably would take the $1 as you value it more now compared to in a months time.
What about if I offered you $3 in a month or $3.50 in two months?
Another month probably would not make a big difference to you so chances are you would probably be happy to wait one more month to get the $3.50.
Now my last question to you – can you see how the relationship has changed over time from these two questions?
This is an example behind one of the reasons why people claim their social security benefits earlier rather than later according to Mark Edwards in the second part of his two part webinar Tips for Advising Couples Filing for Social Security. Altogether there are four pieces to the Annuity Puzzle that he discusses and explains in the webinar, as he continues the conversation from part one of Tips for Advising Couples Filing for Social Security.
I think it is important for students like me to understand that filing before the age of retirement at 66 years old or Full Retirement Age (FRA) leads to a reduction in the benefit claims, whereas filing after FRA increases in the benefit claims. If students know this now at the beginning of their career and adult lives they can plan when to claim their benefits.
The age they chose to claim social security benefits also affects the spouse claims and their benefits. At the age of 62 claims for social security benefits can start to be made, but the majority of people claim around FRA. Surprisingly though a small percentage of the population claim after FRA despite the fact that delaying benefits to the age of 70 produces a great rise in the amount received by 32%.
Retirement may seem like a long way in the future to other students like me but it is good to know information like this to allow long term planning, and then have the potential to benefit in the best way when claiming social security.
To discover more about when the best time for you to claim for Social Security Retirement Benefits is work with a Certified Financial Planner (CFP) practitioner or reach out to the Financial Planning program here California Lutheran University for more information.
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About the Speaker:Mark Edwards is a full time faculty lecturer at California Lutheran University with 30 years of investment management experience. Edwards has an MBA and is Certified Financial Planner. He spent 11 years at Minnesota State Board of Investment, and the next 20 years as a Managing Partner at the Plexus Group. He also written for the Journal of Portfolio Management and for the Financial Analyst Journal. |
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About the author:Rosie Baker is a undergraduate student at California Lutheran University studying Communication with an emphasis in PR and Advertising. She is also minoring in Creative Writing. |
References:
https://www.callutheran.edu/faculty/profile.html?id=mcedward
Watch the archived webinar below:
Tips for Advising Couples For Social Security Pt. 2 – Mark Edwards
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