Surprising Social Security Advice for High-Income Retirees

If you have a high net worth and retirement income, the surest bet may be taking benefits ASAP.

Q: My wife and I are both 65 and will be retiring later this year. Over the course of our careers we’ve worked hard at saving and will both have good pensions. Our plan had always been to wait until age 70 to start Social Security, but given our high annual retirement income (almost $200k), we are concerned that we may lose some of our Social Security if the government ever decides to introduce means testing. What are your thoughts on this? Should we wait until we are 70, or should we take the money now?

A: There are a couple of ways you should address Social Security. One is to simply crunch the numbers based upon current assumptions. The other, which speaks to your concern about means testing, is to consider the possibility that Social Security benefits may be reduced in the future for high-income retirees.

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Scott Hanson, CFP
Financial Advisor and Co-Founder, Hanson McClain Advisors

Scott Hanson, CFP, answers your questions on a variety of topics and also co-hosts a weekly call-in radio program. Visit HansonMcClain.com to ask a question or to hear his show. Follow him on Twitter at @scotthansoncfp.