Timing Social Security: Does Life Expectancy Matter?

📅Timing social security based on life expectancy has little impact on retirement success.

💰Delaying social security may result in slightly higher monthly payments, but it also decreases the probability of success.

🧪Factors such as health, break-even age, and potential benefit cuts should be considered when deciding on when to take social security.

🔍Timing social security has marginal benefits for individuals with a 90% or greater probability of retirement success.

🎯Choosing to take social security benefits early can act as a hedge against potential benefit cuts and system depletion.

Does timing social security affect retirement success?

—Timing social security has little impact on retirement success based on life expectancy.

What are the benefits of delaying social security?

—Delayed social security results in slightly higher monthly payments but decreases the probability of success.

What factors should be considered when deciding on when to take social security?

—Factors such as health, break-even age, and potential benefit cuts should be considered when deciding on when to take social security.

Does timing social security significantly change outcomes for individuals with a high probability of retirement success?

—Timing social security has marginal benefits for individuals with a 90% or greater probability of retirement success.

What is the advantage of taking social security benefits early?

—Taking social security benefits early can act as a hedge against potential benefit cuts and system depletion.

00:00In this video, we revisit Pilot Pete and Chef Steve to examine the impact of life expectancy on timing social security.

02:30Timing social security based on life expectancy has little impact on retirement success.

04:45Delaying social security may result in slightly higher monthly payments, but it also decreases the probability of success.

06:01Factors such as health, break-even age, and potential benefit cuts should be considered when deciding on when to take social security.

06:55Timing social security has marginal benefits for individuals with a 90% or greater probability of retirement success.

07:09Choosing to take social security benefits early can act as a hedge against potential benefit cuts and system depletion.