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A recent article by Michael Finke in Think Advisor discusses some anecdotal evidence he has been hearing about recent trends in SS claiming. Worry about a reduction in benefits apparently is leading some retirees to claim their benefits earlier than might be expected given their wealth. I have to admit that this year’s discussions around SS funding and administration have given me pause.
Two things about the article. It was published in a professional journal targeting financial advisors. Second, the discussion targets more affluent retirees, who can afford professional advice, as well as delaying their SS. I think the discussion is useful information for new or future retirees still considering when to claim SS.
As a member of the not affluent HD readers, I’d say waiting to claim is usually the best strategy for my peers as well, though exercising this option can be tricky for them.
It also seems that many people are looking for an excuse to file early. It used to be a faulty kind of break-even calculation, now they rationalize that SS is going broke.
Good piece!
I suspected this, just the access to medical technology would shift it.
I also agree with a holisitic approach to portfolio thinking and planning.
I had a chance to review 2 of the articles linked in the Finke article – one by Kotlifkoff, and one by Finke and Blanchett. The 2nd linked article provides some interesting discussion and data on the differences in longevity for more affluent retirees. That’s something that should likely be considered by many of HD readers. This is even more important for couples with longevity concerns.
That was an interesting article. Thanks for mentioning it. I saw something similar at JP Morgan. Retirement: Planning for what’s next | J.P. Morgan Private Bank U.S.
Not sure how claiming earlier is a good strate