TY - JOUR T1 - Strategies for Maximizing Social Security Benefits JF - The Journal of Wealth Management SP - 25 LP - 31 DO - 10.3905/jwm.2009.12.1.025 VL - 12 IS - 1 AU - Allen B Atkins AU - Frank N Caliendo Y1 - 2009/04/30 UR - https://pm-research.com/content/12/1/25.abstract N2 - People nearing retirement face a well-known decision: When should Social Security benefits be initiated? The answer may not seem obvious since there is a key trade-off involved. The retiree can choose low benefits for a longer period of time, or high benefits for a shorter period of time, or something in between. The optimal initiation date that maximizes Social Security wealth is a quantitative question and it depends on the life expectancy of the person and on the real rate of return they expect to earn on their investments, among other things. The authors attempt to provide some answers to this practical and important question. Their focus throughout is on relatively high-wealth individuals who will receive the maximum Social Security benefits. They show how the government’s Social Security benefit calculator—which makes recommendations on the optimal age to initiate benefits—can be inappropriate for high-wealth individuals. They conclude with the following rough rule of thumb. Take benefits early ( i.e., at age 62): If an individual expects to make a good return on their investments. This is true regardless of their life expectancy. Take benefits later (i.e., at age 70): If an individual expects to make modest investment returns and they expect to live a long time.TOPICS: Retirement, wealth management, social security ER -