When Should You Claim Social Security?

This week's blogpost - https://bahnsen.co/4bDXOsO

Trevor Cummings hosts a Thoughts on Money podcast discussion with Blaine Carver and Brett Bonecutter about when to claim Social Security (62, 67, or 70), comparing the tradeoff between smaller checks for longer versus larger checks for fewer years, and emphasizing that psychology and personal priorities often drive the decision. They note Social Security provides about 45% of retirement income for the average American, outline benefit increases from delaying (6%–8% per year), and explain how expected portfolio returns shift break-even ages using a chart that incorporates longevity and rates of return. The episode covers key rules: benefits are based on 35 highest earning years, full retirement age is 67 for those born in 1960+, PIA as the baseline, spousal benefits (up to half a spouse’s benefit), survivor benefits—especially important for older higher-earning males—and taxation where up to 85% of benefits may be taxable. They also discuss Roth conversion interactions, a mortality spike at age 62 for men, the first Social Security recipient’s payout history, and note the Social Security Fairness Act repeal of WEP/GPO affecting some workers.

00:00 Podcast Introductions

00:23 Kids Race Analogy

01:40 Claiming Age Tradeoffs

02:26 Math Versus Psychology

05:10 Why Delay Benefits

07:30 Mortality Spike Discussion

10:34 Longevity And Affluence

12:18 Break Even Chart Explained

19:22 Utility Versus Maximizing

26:11 Social Security Basics

27:42 Spousal Benefit Basics

29:39 Claiming Rules and Retroactive Filing

30:27 How Social Security Is Taxed

33:11 Roth Conversions and Tax Planning

35:16 Fun Facts and Real World Nuances

38:07 Rate of Return vs Longevity Debate

42:59 Survivor Benefits for Couples

49:14 Fairness Act and Final Wrap Up

Links mentioned in this episode:

• http://thoughtsonmoney.com
• http://thebahnsengroup.com