When Should You Take Social Security?

I’ve written extensively in the past about the decision of when to take Social Security.

Delaying Social Security Is The Best Annuity.

Taking Social Security Before Full Retirement Age.

Should You Take Social Security At 62 And Invest It?

But recently I came across this beautiful decision tree on when to take Social Security that I had to share.

It considers several important factors. First, whether you are working and may be subject to an earnings test that would reduce your benefit. Second, whether you would invest the money or just spend more. And finally, your longevity expectations.

The conclusion –

If you have a short life expectancy, are not working, and will invest the money, 62 is perfect.

If you have a long life expectancy, are working, and will not invest the money, 70 is perfect.

For everyone else, somewhere in between may be best.

Happy planning,

Alex

This blog post is not advice. Please read disclaimers.