The most popular times to apply for benefits include when people are 62 years old and are first eligible; when traditional retirement begins at 65; when people are at the new retirement age of 67, and at age 70, when lifetime benefits are at their maximum.
But an advisor can help a client figure out the best time for that individual.
“He or she can consider the client’s longevity, how much money he has in savings and other benefits, the best tax strategy and other issues. What good is it to determine what seems to be a good time to receive benefits, if it turns out to be a bad time from a tax perspective?” he asked. “There are a series of decisions that need to be coordinated.”
Some advisors need to close their own knowledge gaps before advising their clients, Meyer added. Social Security Solutions holds webinars and has whitepapers for advisors on income strategies.