Printed in the High Desert Advocate Edition September 17, 2021.

Is It Always Best to Wait Until Age 70 to Claim Social Security?

      Dear Rusty: I’m 66 years old and still (self) employed as a home builder. I have not taken Social Security benefits yet, and don’t need to at this time. If relevant, my business struggled when I first started it five years ago, but did well last year, and I’ll have my highest earning year in my life this year and possibly next year as well. My question is, and it may be dumb, is it always best to delay Social Security until age 70 if there is no current financial need for it? Also, are benefits calculated by total dollars earned over a lifetime, or is some kind of average or mean computation used? I’ve enjoyed excellent health throughout my life, and I have longevity in my family. I’m single if that’s relevant.Signed: Planning Ahead 

      Dear Planning Ahead: There is never a dumb question about Social Security because it’s a highly complex program. No, it isn’t always best to delay claiming SS until age 70, but yours might be a typical example of why waiting until age 70 to claim is a very smart move. Here’s why:

        • Your benefit at age 70 will be about 31% more than it would be at your full retirement age (FRA), which is 66 years and 2 months if you were born in 1955. 

      • If you are still working and don’t urgently need the money, your SS benefit will grow by 8% for each full year you delay claiming (but you can still claim at any time if necessary and get all Delayed Retirement Credits (DRCs) earned to the point you claim). 

      • Your benefit amount will be computed using the monthly average of your lifetime 35 highest earning years, so if your current and more recent earnings are among your highest, they will be included in your benefit computation when you claim. Your earnings in the early years will be adjusted for inflation, and if you don’t have a full 35 years of earnings, they will still use 35 (putting zeros in to make 35). So, if you don’t have a full 35 years of lifetime earnings, your current earnings now will eliminate some of those “zero earnings” years, resulting in a higher benefit. 

      • If you’re in good health now and you enjoy at least an “average” longevity (about 84 for a man your age), you’ll get more in cumulative lifetime benefits by waiting until age 70 to claim and enjoy that higher monthly benefit for the rest of your life. If you wish to estimate your life expectancy, you can use this tool we use here at The AMAC Foundation: https://socialsecurityreport.org/tools/life-expectancy-calculator/. 

       • Since you’re single, you don’t need to worry about maximizing a survivor benefit for your spouse, but if you marry or have an ex-spouse who outlives you, then waiting until age 70 to claim would give them the maximum survivor benefit they are entitled to. 

      So, in your specific circumstance, waiting until you are 70 to claim appears to be a wise choice. For others who don’t enjoy good health and don’t expect to make average longevity, or for those who urgently need the money earlier, claiming before age 70 is often a better choice.

          This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.

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…Smile…

Another way to say Thanks

The struggling employees of an eatery in Gainesville, FL that was hard hit by the coronavirus epidemic got a lift recently when a patron paid his $144.66 dinner tab, adding a $10,000 tip. When the unnamed philanthropist, his wife and son finished their meals he asked the owner of the Wahoo Seafood Grill if he would gather his staff so he could have a word with them. The diner thanked the restaurant’s ten employees, informing them of the big tip each of them had earned — $1,000 each.  Shawn Shepherd, who owns the Wahoo Grill, took to Instagram to express his thanks, writing: “I’m not usually an emotional guy, but this really got me. I’m blown away. We’re ALL blown away by his generosity. The last year and a half hasn’t been easy on this industry. We’re hurting and we’re exhausted, but this incredible act of kindness has restored our faith in humanity.”

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Odd, Strange, Weird

Congratulations go to the proud winners of A Nobel Prize — not THE Nobel Prize — the Ig Nobel Prize, awarded by the science magazine Annals of Improbable Research.  It’s sort of a spoof that for 31 years has presented awards for odd, strange and weird accomplishments, according to the Association of Mature American Citizens [AMAC]. For example, this year’s honorees include the researchers from Spain and Iran for their study of the germs found in chewing gum scraped from streets and sidewalks in different countries. They won the Ecology Prize. The winner of the Economics Prize, Dr. Pavlo Blavatskyy, whose study suggests that you can measure the corruption in a country by how fat its politicians are. And then there is the Transportation Prize that went to a multi-national team who sought to determine whether it is safer to airlift a rhinoceros upside down or right side up.

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A Hairy Tale

Diehard fans of Elvis Presley, the iconic rock and roller of the mid-20th Century, would pay well for a lock of his hair, says the Association of Mature American Citizens [AMAC]. One fan forked over $72,500 for a jarful of curls clipped from the head of “Elvis the Pelvis” at an auction recently. Presley’s personal barber, Homer Gilleland, had collected a “baseball size clump” of his hair over a 20 year period. He gave it as a present to a friend, who in turn put it up for sale.

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The Pup had her Feet on Wrong

The poor puppy was born with her paws upside-down, according to the Association of Mature American Citizens [AMAC]. But veterinarian Dr. Erik Clary, who corrected nature’s mistake, says that actually the problem was in the pup’s elbows. As he described it: “these patients’ elbows come out of joint early in life and the result is severe rotation of the lower front limbs and an inability to walk.  At most, they might muster a crawl that seems most uncomfortable and is poorly suited for a dog’s life.” Fear not, Siggi the pup is on the mend. He says Siggi’s already walking and chasing a ball around during the rehabilitation process.