: When to claim Social Security? The age-old question answered.

by | Jan 18, 2023 | Stock Market

Choosing when to claim Social Security is a major financial decision that will affect your finances for the rest of your life. So, when’s the best time to start collecting for the best return? The short answer is wait until 70 to claim Social Security.

The long answer is that claiming as early as possible — at age 62—and investing that money still is unlikely to beat the returns seen from waiting for a larger payout, according to a new study in the Journal of Financial Planning. “Before the study, someone would say ‘invest Social Security benefits and earn 10% a year instead of delaying’ as if that were the answer. But most people don’t invest 100% in stocks and you’re not promised to get those returns,” said Wade Pfau, professor of retirement income at the American College of Financial Services and author of the Retirement Planning Guidebook. “Generally, wait as long as possible and you’ll get a better outcome than investing,” Pfau said. The study reaffirmed what Pfau, the study’s co-author, suspected: it’s best to wait until 70 to claim Social Security, if possible, if you want to have a better return and leave the largest inherita …

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