Millions rely on Social Security to make ends meet in retirement, and a large number of recipients take their benefits as early as possible. But that causes them to miss out on a great way to boost their future income.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the decision to delay Social Security benefits from a new perspective. Dan gives a simple example of how someone who had earned benefits of $1,000 per month if they waited until age 66 would only get $750 monthly if they take benefits at age 62. One way of considering that trade-off is to think of giving up four years of benefits at $750 in exchange for an additional $250 of income for the rest of your life. Dan points out that AIG (NYSE: AIG ) , MetLife (NYSE: MET ) , Prudential (NYSE: PRU ) , and other companies offer such annuities, and you won't generally be able to get a $250 monthly annuity for just a $36,000 upfront payment. Dan recommends looking closely at these trade-offs to see if they make sense for you, especially given the positive impact that waiting has on survivors' and spousal benefits as well.
Don't miss out on a cent of your Social Security
Being smart about when you take Social Security is just one thing you have to consider in retirement. Get all the benefits you're entitled to by reading our brand-new free report, "Make Social Security Work Harder for You," in which our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.