It’s a common strategy to delay retirement until the age of 70 to maximize Social Security benefits for a full monthly paycheck. Believe it or not, this isn’t always the best option. There are few instances where it might be a better idea to file for retirement sooner rather than later. This guide explores situations where it might not be ideal to delay retirement in Florida.
Maggi Tax & Wealth Advisors is here to help find the best path for your retirement. Schedule a consultation today to meet with our trusted team of expert income planners in Tampa!
1. You May Not Live Past Your Benefits
Not everyone lives to be ninety. It’s a tough thing to think about, but planning out your retirement accordingly means being realistic. Tampa employees going through serious health issues or have a family history of life-shortening conditions will want to consider retiring as soon as possible rather than delaying retirement for an extra few years.
Some may argue that delaying Social Security benefits is necessary to avoid outliving your retirement savings, but there are other ways to live comfortably in retirement without financial stress through proper private wealth management.
Read our guide > Can You Retire Comfortably In Tampa Without Outliving Your Savings?
2. Your Benefits Stop Increasing After Age 70
There’s a benefit to delaying retirement, but those benefits still have a limit. Many employees in Tampa prefer to delay their Social Security benefits, as each year you wait to claim adds an 8% increase. What many of these employees don’t know is that this annual increase caps out at the age of 70. So if you’re choosing to delay your Social Security benefits to boost your monthly paychecks, make sure you don’t wait past your 70th birthday.
3. You Might Need Financial Support Sooner Than Later
Everyone’s financial situation is different. Some can afford to wait until age 70 to retire, while others may need the help from their Social Security pension as soon as possible. This is a valid reason for not delaying retirement, as there’s little point to retiring late if you’re not going to be able to enjoy it. SS might be the only way to survive for those with no other source of income.
Tampa retirees who need more money sometimes choose to enter a phased or partial retirement, continuing to work part-time while receiving Social Security.
Learn more > What Are The Smartest Ways To Stretch Your Social Security Benefits In Tampa?
4. Claiming SS Benefits Can Preserve Your Personal Retirement Investments
Employees in Tampa with multiple retirement savings accounts can opt for Social Security benefits at the minimum retirement age as a way to allow their other retirement savings outlets to grow. The goal is to live off of SS paychecks so that you delay dipping into your 401(k) or IRA accounts. This is a tried-and-true portfolio management strategy often practiced among high-net-worth individuals in Florida.
Maggi Tax & Wealth Advisors Can Help You Make the Best Choice For Your Retirement Benefits
Find the best retirement strategy for you when you meet with experienced and knowledgeable money managers for Social Security services in Tampa. Call Maggi Tax & Wealth Advisors at (727) 799-1701 to schedule a consultation!
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