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Valued Social Butterfly
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Re: using savings for a year to increase social security?

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Message 11 of 12

You can start your Social Security old age benefit anytime between age 62 and 70.  A reduction in your benefit occurs if you begin the benefit at age 62 up to whatever your full retirement age might be (66 and whatever # of months).  The longer you wait - the higher the benefit - up to age 70 when the delayed retirement credits actually stop accruing.

 

This Social Security.gov link will give you all the info and the % of increases for each year that you wait.

Social Security.gov - How benefits increase if you wait

 

Now figuring out if you can wait - is up to you and your finances.

I did it. 

If you have already filed for benefits - you might need to make up your mind real soon or you will be paying money back if you decide to wait -

* * * * It's Always Something . . . Roseanne Roseannadanna
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using savings for a year to increase social security?

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Message 12 of 12

Hello,

I'm recently retired, 63, healthy, and have not received SS yet though I have applied.  I read that the average SS check increases about 7 to 8% for every year of delay.  I have a defined pension benefit that I think with some effort I can live on.  I have a savings account that is earning 2.2% annualy.  My question: in this case is it worth waiting on receiving SS for a year or 2 and in effect receive a much higher return on my regular savings (what seems to be a 4.8 to 5.8% increased return) even if I need to draw off of my regular savings account from time to time.  Does this make some sense or am I just spinning in circles?

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