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Dana Anspach

When Break-even Breaks Down

By January 4, 2013

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With Social Security benefits, a common (but often erroneous) way of looking at the decision as to when to collect benefits is to look at how long you have to live to make a delayed benefits start date more economically beneficial than an early start date.

For married couples, this decision making process is dead wrong. This new analysis by Social Security Timing®, an organization the builds software that helps advisors determine a client's best claiming options, compares two ways of looking at the "break-even" decision for married couples, with one way providing a far clearer picture of how a well designed plan as to when you claim benefits can be of benefit no matter what the longevity combinations of each spouse may be. Check it out at When Break-even Breaks Down.

Currently there are several publicly available social security calculators that can help you figure out a benefit combination that will be best for you. However, they each may use slightly different formulas and assumptions, and keep in mind, if its free, you often get what you pay for.

Nevertheless, doing some analysis on this important decision is better than doing none.

(Author disclosure: I subscribe to Social Security Timing®'s software.)

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