This article discusses the basics of how to decide when to begin Social Security retirement benefits. It explains the break-even point, which is 77 to 78 for most people. It also explains different ways to include inflation adjustments in your calculations as well as potential investment returns. It also explains some key mistakes people make when making the calculations.
When you’re weighing how investments factor into your decision, don’t forget the value of Social Security benefits relative to more riskier asset classes, Elsasser said.
“You’re never going to have a Social Security benefit that loses 40 percent in a market crash,” Elsasser said.
When comparing Social Security to investments, many people make the mistake of using the average return of the Standard & Poor’s 500, according to Doug Lemons, a Social Security expert and certified financial planner.