New research gives important guidance on how to stretch your retirement dollars the furthest: In your 60s, lean on a “bridge” of withdrawals from your 401(k) and don’t start claiming Social Security until you turn 70.
While you can start claiming your Social Security retirement benefit at age 62, doing so locks in the minimum benefit you are entitled to; waiting until 70 to start entitles you to the maximum benefit. And the gap is massive: Starting at 62 will give you 76% less than starting at 70. There is no other risk-free investment out there that hands you a guaranteed 76% return over eight years. Yet fewer than 10% of retirees wait until age 70 to begin receiving Social Security.