When to draw Social Security

[lcarpenter79]

claiming Social Security early has a benefit that is rarely discussed. The combined annual benefit for my wife and I is about $45,000. Drawing this amount instead of withdrawing this from our IRA, allowing this amount to grow within the IRA. If invested in an S&P 500 ETF, this has earned roughly 15% each year for the past 3 years. In addition, the COLA has been 8.7% in 2023, 3.2% in 2024, and 2.5% in 2025. The ability to keep the equivalent amount of SS payments invested should be a consideration in everyone’s decision for when to claim early vs waiting to claim SS at full retirement age. My breakeven for claiming early is around 90 years of age, due to the investment returns… my recommendation is to claim early and stay invested!!!

[TRL1111]

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@lcarpenter79 wrote:

My breakeven for claiming early is around 90 years of age, due to the investment returns… my recommendation is to claim early and stay invested!!!

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More accurate would be to say "due to the anticipated investment returns."  Don't forget that past performance is no guarantee of future results.

Also, if you delay taking social security, you'll get a higher benefit, permanently, once you do start taking it.  And it's not insignificant--the increase is 8% per year after your full retirement age.  That should be factored in when evaluating the risk of being in the stock market.

Just like with Medicare, there is no one-size-fits-all recommendation.