Why the lump sum payment doesn't always maximize benefits

Advisors often ask us about Social Security’s lump sum payment because they’ve read articles mentioning this option.

These articles often use an example like this: someone files and suspends at 66 with the goal of waiting until 70 to build delayed retirement credits of 8% each year but then is diagnosed with a terminal illness at 68. The client could then request a lump sum payment to act as though he were receiving a benefit amount as early as when he first suspended. We’ve heard rumblings


Posted in Social Security, Lump sum payment