Question from client: “So when is the best time to take my Social Security?”
Answer (in my head): “Well, I don’t know Mr Jack, let me just pull that number out of a hat.”

Actually, a great question. And one with straightforward answer. Especially today, as the Social Security Administration has just changed the rules and they are even more complex.

But let’s start with the basics: You can take it as young as 62 and as old as 70. What will change? The amount of payments and the dollar size.

Now, whether you should start to receive Social Security counts on many factors, including income, assets, location, taxes, filing status, job status, children, etc.

But for our economic discussion, is holding on dipping into your Social Security savings worth the wait?

Looking at the chart below, you’ll start to quickly see where I am going and probably be able to start to make your own decision.

Age      Percentage of Benefit*
62                  75%
63                  80%
64                 86.7%
65                  93.3%
66                 100%
67                108%
68                  116%
69                124%
70                132%
So, if at age 66, we are all due 100 percent of our Social Security benefits, then let’s use the government average now, which is $12,000 a year.

If I decide to take my check from age 62 to 65, I will receive $9,000 a year or a 25 percent loss. Since I’m losing under this scenario, if I take it at its earliest (age 62) I will be losing over six percent in interest per year for four years (age 62 to 65).

If I decide to wait till age 70, I will receive $15,400. Based on the original principal ($10,000), I will be gaining eight percent a year, per year, for four years (age 66 to 70).

As I said above, many factors should be considered for a proper retirement plan, but can you imagine these two situations, which both involve a 62 year-old and another 70-year-old standing on line at the SSA office. Deciding what to do next will affect the rest of their lives

Or think of yourself having $10,000 free cash to save for four years. You decide to put it in the bank. You see two banks on each corner promoting their four-year CD savings accounts. Bank A offers you four years, negative six percent annually or Bank B, four years, positive eight-percent annually. Bank B sounds like a great investment for four years, right?

*Data source: Social Security Administration.

Anthony Rivieccio is the founder & the CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, Bronxnet, Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News and The Bronx Chronicle. For financial assistance or a free second opinion on your 2015 Income Tax Return Mr. Rivieccio can be reached at (347) 575 5045.