Delaying your benefits as long as you can could give you greater income for life. Can you afford to wait? Here’s how to determine the timing that’s right for you.
EVEN FOR AMERICANS WHO HAVE INVESTED DILIGENTLY for retirement over the years, Social Security benefits matter. One of the first big decisions we're faced with as we approach retirement is when to claim our benefits—and timing is important. While you can start as early as age 62, waiting a few years or until you reach your full retirement age can substantially increase the amount you receive over your lifetime. (See "Find Your Full Retirement Age," below.)

We recently sat down with Ben Storey, Director, Retirement & Personal Wealth Solutions, Financial Power, to get the latest thinking on what's important to consider as you make your decision.

Ben, we're all living longer. Does that change how and when we claim Social Security benefits?

Ben Storey: Considering that one of the biggest retirement concerns people have is outliving their money, waiting to collect Social Security benefits begins to make a lot more sense than it might have in the past. Waiting to claim benefits can be a way of gaining a measure of protection against your risk of longevity.

As most people know, the longer you wait to begin taking benefits, the greater the monthly amount you receive. But that's especially significant in the event that you live a very long life. And because market interest rates are still quite low today, letting the government keep your money longer could potentially provide a higher return than you could get from most fixed-income investments.

FP: Talk a little more about that. How might postponing your payments work to your benefit?